Gold climbs for 4th day as SPDR holdings rise
Reuters reported that gold climbed more than 1% to its highest in nearly two weeks on soft US data and as holdings in the world's biggest gold exchange traded fund rose for the first time in two months.
Holdings in SPDR Gold Trust grew 0.2% to 911.13 tonnes on Friday the first increase since June 10. The fund has seen over 14 million ounces in outflows this year, about USD 19 billion at current prices.
Outflows from ETFs have had a big impact on gold, which has lost about 20% of its value in 2013. Investors have been exiting gold in favour of Higher yielding stocks as the metal's safe haven appeal has been dented by a recovering US economy. Talk of a pullback in US stimulus measures has also hurt bullion.
A trader in Hong Kong said that "The inflows into SPDR are good news. The fund tends to have an impact on prices because of its size. But I don't think (inflows) will persist as fundamentals for gold are still negative."
Spot gold had gained 1.3% to USD 1,330.51 an ounce by 0730 GMT. It hit USD 1,333.31 earlier its highest this month. Silver rose 2.2 percent, while platinum touched fresh 2 month highs.
Mr Wang Tao Reuters technicals analyst said that spot gold is expected to test further resistance at USD 1,336 with a good chance of breaking through that and rising towards USD 1,356.
Gold has also been boosted by data showing US wholesale inventories fell unexpectedly for a second straight month in June, prompting economists to trim their Q2 economic growth estimates.
Investors are watching economic data to gauge when the Federal Reserve will begin reducing its commodity friendly stimulus measures. Weak data could prompt the US central bank to hold back on the cuts.
Source - Reuters