Millennium Post

World gold prices gallop to 10-day high

Gold on Thursday rose to a 10-day high on increased central bank buying and signs of more investor demand following last week's biggest drop in 30-year.

The yellow metal rose by 1.1 per cent to $1,448.28 an ounce. It had slumped 9.1 per cent on April 15, the most since
February 1983.

Silver too gained 0.8 per cent to $23.36 an ounce.Russia and Kazakhstan expanded gold reserves for a sixth month in March, show International Monetary Fund (IMF) data.

The volume for the Shanghai Gold Exchange's benchmark contract has been more than four times last year's daily average every day since April 16 while coin sales by the US Mint are heading for the highest since December 2009.Bullion has fallen 14 per cent in 2013 after climbing for 12 years through 2012, tumbling to a two-year low of $1,321.95 on April 16.

Prices are still about 7 per cent below the April 11 close of $1,561.45 that preceded the slump.Assets held in the SPDR Gold Trust, the largest ETP, had dropped to a 3 1/2-year low of 1,092.98 tonnes on Wednesday and shrank 11 per cent this month.

'Some of the central banks might take this drop as an opportunity to buy as some physical players did,' said the head of commodities research at UBS in Singapore. 'The ETF selling, which is likely to continue in the short term, just caps the price.'

The US Mint's gold coin sales totaled 196,500 ounces, up from 62,000 in March, the company data showed. The amount for all of December 2009 was 231,500 ounces. The mint said on April 23 it ran out of its smallest American
 Eagle gold coins.    


Gold prices spurted at the bullion market here on Thursday on strong demand from stockists and traders coupled with marriage season off-take from consumers amid higher global cues.

Silver also soared on low-level speculative buying and industrial demand, and regained the Rs 45,000 per kg mark.

Standard gold of 99.5 per cent purity shot up by Rs 400 to end at Rs 26,970 per 10 gms from Wednesday's closing level of Rs 26,570.

Pure gold of 99.9 per cent purity also surged by a similar margin to finish at Rs 27,110 per 10 gms from Rs 26,710.

Silver ready (.999 fineness) vaulted by Rs 715 to close at Rs 45,315 per kg from Rs 44,600 on Wednesday.
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