» Gold Advances for Fifth Day in Longest Winning Streak This Year
Monday, April 22, 2013
Gold Advances for Fifth Day in Longest Winning Streak This Year
Gold climbed for a fifth day in its longest rally this year as the biggest slump in three decades boosted physical purchases. Silver gained.
Gold for immediate delivery rose as much as 1.2 percent to $1,420.90 an ounce and was at $1,416.45 by 9:30 a.m. in Singapore. The metal’s five-day advance is the longest run since December, after a 9.1 percent plunge on April 15 that was the most since 1983. Bullion’s 14-day relative strength index remained below the level of 30 that indicates to some analysts who study technical charts that a rebound may be imminent.
The volume for the Shanghai Gold Exchange’s benchmark cash contract surged to a record 30,440 kilograms on April 19, according to data on the bourse’s website. The U.S. Mint has sold 167,500 ounces of gold coins so far in April, according to the Mint’s website. That compares with 62,000 ounces sold in the whole of March, data compiled by Bloomberg show.
“Physical demand around the world remains robust,” said Xiang Nan, an analyst at Citics Futures Co., a unit of China’s biggest listed brokerage. “While gold has rebounded almost $100 from the low, prices are still $200 lower than what they were just a few weeks ago.”
Gold is down 15 percent in 2013 after rising sixfold in a 12-year rally through last year. Bullion held in exchange-traded products decreased for a 14th day to 2,340.618 metric tons on April 19, the least since November 2011. The metal touched $1,321.95 on April 16, the lowest since January 2011, on speculation central banks in Europe may sell holdings to raise funds and data showed China’s economy grew less than estimated.
Gold for June delivery rose 1.5 percent to $1,417.10 an ounce on the Comex, gaining for a third day. Fund managers and other speculators increased net-long positions in gold by 9.8 percent to 61,579 futures and options in the week ended April 16, U.S. Commodity Futures Trading Commission data show.
Cash silver advanced 0.6 percent to $23.3985 an ounce, rising for the first time in four days. Spot platinum climbed 0.8 percent to $1,438 an ounce, while palladium gained 0.4 percent to $679.60 an ounce.(bloomberg)