Tags: gold | India | market | metals

Gold Rebounds From Eight-Month Low After India's Imports Climb

Monday, 15 Sep 2014 03:50 PM

Gold futures rebounded from an eight-month low on signs of increased demand for bars and jewelry in India, the world’s second-largest consumer.

Gold imports more than doubled to shipments worth $2 billion from $739 million a year earlier, Indian government data showed today. Demand climbed after the government allowed more banks and traders to buy the metal overseas. China is the top consumer.

In four of the past five weeks, gold fell on concern that the Federal Reserve will move closer to raising U.S. interest rates, cutting demand for the metal as a hedge against inflation. Policy makers at the central bank begin a two-day meeting tomorrow.

“There is some physical buying that’s keeping prices supported,” Miguel Perez-Santalla, sales and marketing manager at Heraeus Metals New York LLC, said in a telephone interview. “The main focus of the market is the Fed meeting, and many investors are in a wait-and-watch mode.”

Gold futures for December delivery rose 0.3 percent to settle at $1,235.10 an ounce at 1:38 p.m. on the Comex in New York. Earlier, the price touched $1,226.30, the lowest for a most-active contract since Jan. 9. Trading was 25 percent below the 100-day average for this time, data compiled by Bloomberg show.

The metal tumbled 28 percent last year, the most in three decades. The Fed reduced monthly bond purchases to $25 billion on July 30, the sixth cut of $10 billion since November. Last week, inflation expectations, measured by the five-year Treasury break-even rate, reached the lowest since December.

Silver futures for December delivery rose 0.1 percent to $18.62 an ounce. On Sept. 12, the price touched $18.455, the lowest since June 28, 2013.

On the New York Mercantile Exchange, platinum futures for October delivery fell 0.5 percent to $1,363.50 an ounce. The price declined for the sixth straight session. Last week’s 2.9 percent drop was the biggest since Jan. 31.

Palladium futures for December delivery gained 0.1 percent to $836.90 an ounce.

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Gold futures rebounded from an eight-month low on signs of increased demand for bars and jewelry in India, the world's second-largest consumer.
gold, India, market, metals
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2014-50-15
Monday, 15 Sep 2014 03:50 PM
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