Gold prices continued to climb on Monday, rising above the $1,200 level last week, climbing to the highest in almost four weeks as traders raise worries over the global economic growth slowdown. The concerns over the global growth have spurred speculations that the US Federal Reserve may push back interest rate increases.
Gold for immediate delivery climbed 1.2% to trade at $1,237.86 an ounce, the highest since Sept 17, according to the Bloomberg generic pricing. Gold for December delivery advanced 1.3% to $1,238 an ounce on the Comex. Last week, futures for the yellow metal were at $1,233.80, extending last week’s gains.
Silver for immediate delivery rose 0.85 to $17.5401 an ounce, after climbing 3.3% last week, while spot platinum gained 0.3% to $1,265.50 an ounce and palladium advanced 0.7% to $790.50 an ounce.
Last week, the International Monetary Fund cut its global growth forecast and said the Euro-block could fall into recession. IMF said it expects the global economy to grow 3.8% by 2015, down from the previous forecast of 4% made in June, while this year’s world economy growth is expected to come in at 3.3%.
Traders cut net-long positions in futures for an eighth week in the week ended Oct 7, according to a US government report. Holdings in the world’s biggest gold-backed exchanged-traded fund, SPDR Gold Trust, dropped to 759.44 metric ton on Oct 10, the lowest since December 2008.
Free Reports:
China, the world’s largest gold consumer and producer, reported a trade surplus of $31 billion this month from $49.84 billion in August after reporting a climb in imports by 7% and 15.3% rise in exports.
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