LONDON: Gold climbed to its highest in nearly two weeks on Monday, shrugging off dollar strength, as US economic data pointed to sluggish growth and the world’s biggest gold exchange-traded fund recorded the first inflow in two months.
Holdings in SPDR Gold Trust grew 0.2 percent to 911.13 tonnes on Friday — the first increase since June 10. The fund has seen more than 14 million ounces in outflows this year, about $19bn at current prices.
Spot gold rose as much as 1.5 percent to $1,333.31 an ounce earlier in the session, its highest since July 31. It was trading up 0.9 percent at $1,326.30 by 1140 GMT, on track for its fourth straight day of gains.
US gold futures for December gained $13.20 to $1,325.50 an ounce. Traders reported some buying of gold by those who had agreed to sell at future dates in expectation of lower prices.
“The move above $1,300 last week has raised the risk of some additional short-covering, but the technical picture is quite neutral and it could only improve if we see gains pushing prices above the $1,350 level,” Saxo Bank senior manager Ole Hansen said.
“It is interesting to see some strength at a time when we are also seeing a stronger dollar, which is a wake-up call to those looking for much lower prices that there is going to be a bit of a fight,” he added.
Reuters
