Gold prices were seen climbing to its highest in two month, boosted by the ongoing tension in Iraq and the outlook for the US economy. While South African platinum and palladium prices rose before producers finalized a deal to end the mine strike in the country.
Bullion for immediate delivery rose 0.5% to $1,324.52 an ounce, after it had reached $1,324.67 earlier during the session. Gold for August delivery climbed 0.50% to $1,325.10 on the Comex in New York.
Last week, bullion advanced as the US Federal Reserve announced that it will maintain its interest rates at almost zero and trimmed its bond purchases for the fifth time in a row as the world’ s largest economy improves. Bullion dropped by 28% last year on speculations that the Federal Reserve will cut its asset purchases as the US economy recovers.
The yellow metal has risen by 6% this month and is set for its first back-to-back quarterly gain since 2011, as the tension in Iraq and Ukraine boosted demand for a haven.
Assets in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, came in at 785.02 tones at the time of writing.
Free Reports:
Commerzbank said that “in the week to 17 June, speculative financial investors topped up their net long positions in gold again for the first time in six weeks. They have now been increased by over 40% to 53,600 contracts, though this was attributable almost exclusively to the covering of short positions.”
Last year, China overtook India as the world largest gold consumer. Switzerland exported 12.4 metric tons to China and Hong Kong last month, down from 37.6 tons exported in April, data from the Swiss Federal Customs administration showed.
Silver gained 0.4% to $10.974 an ounce, while platinum added 0.5% to $1,463.38 an ounce and palladium rose 0.7% to $827.76 an ounce.
South African platinum mines plan to sign a deal with unions to end a crippling five-month strike.
“Platinum and palladium prices remain well supported, with both markets facing sizable deficit this year,” Citigroup Inc. said in a report today. “We expect prices to remain supported in the second half of this year as miners seek to rebuild and buffer stocks depleted after such a lengthy production stoppage.”
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