Investors bought gold through exchange-traded products at the fastest pace in more than four months as Greece’s financial woes revived demand for the metal as a haven.
Global assets in the ETPs rose by 6.3 metric tons last week, the biggest addition since Feb. 6, data compiled by Bloomberg show. Demand from Greek customers for Sovereign gold coins was double the five-month average in June, the U.K. Royal Mint said in an statement.
Gold futures for August delivery gained 0.5 percent to settle at $1,179 an ounce at 1:39 p.m. on the Comex in New York after rising 0.1 percent on Friday. Today’s advance marked the first consecutive gain since June 10.
The metal headed for the fourth straight quarterly loss, which would be the longest slump since 1997. Signs that the Federal Reserve is on track to raise U.S. interest rates for the first time since 2006 have cut the appeal of gold, which only offers returns through prices gains and doesn’t pay interest, unlike competing assets.
Silver futures for September delivery fell 0.5 percent to $15.695 an ounce. Prices are down 5.4 percent this quarter.
Palladium futures for September delivery slumped 1.8 percent to $666.45 an ounce on the New York Mercantile Exchange. The price touched $665.20, the lowest for a most-active contract since July 1, 2013.
The spot gold-palladium ratio jumped as much as 2.3 percent to 1.7687, the highest since March 20, 2014, according to Bloomberg generic pricing.
Platinum futures for October delivery climbed 0.1 percent to $1,082.30 an ounce on the Nymex. The price has dropped 11 percent this year, while palladium has slumped 17 percent.
Source : Bloomberg