Prices of gold were seen rising during Asian trading session on Wednesday, following reports from China which showed the demand for gold was stronger in October and during the whole year.
Yellow metal futures advanced 0.37% higher, trading at $1,246.10 per troy ounce at the time of writing, while the silver futures gained 0.34%, standing at $19.960 per ounce at the same time.
Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, came in at 848.91 tones on Tuesday, dropped to its lowest level since February 2009.
The US dollar index, which measures the strength of the US dollar against a basket of six of its major peers, dropped 0.05% to 80.569 points.
According to recent data, China imported 129.9 metric tons of gold in October, the highest in seven months, up from 109.4 tons recorded in the previous month. Demand increased to 955.9 tons in the first ten months of the year, doubling last year’s amount.
According to forecasts from the World Gold Council, China is expected to overtake India as the biggest gold consumer as its demand is expected to reach 1,000 tons by this year end.
The consumer Confidence Index for November dropped to 70.4, from last month’s reading of 71.2 and below analysts’ forecast of 72.4.
Meanwhile, home-builders in the US took out 1.034 million in October, higher than analysts’ forecasts of 940,000. In September, 974,000 issued permits and 926,000 in August, according to reports from the US Department of Commerce.
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