Gold Futures rebounded on Tuesday, picking up from a drop earlier in the day during the Asian trading session as metal investors expect a boost in physical demand in Asia against slowing investment demand.
Bullion for February delivery climbed 0.15% higher to $1,239.80 an ounce on New York’s Comex at the time of writing. Prices for the yellow metal climbed to $1,248.51 yesterday, the highest price since December 16.
Silver futures added 0.2% to $20.2237 an ounce, climbing for the fourth day in a row, while Platinum gained 0.2% to $1,420.50 an ounce at the same time.
The Federal Reserve (Fed) confirmed it would reduce its monthly bond purchases from $85 million to $75 billion, starting this month.
Holdings in the world’s largest exchange-traded product, SPDR Gold Trust, stood at 794.62 tons yesterday, the lowest level since 2009.
“The Chinese will certainly be looking at taking advantage of these lower prices,” said Gavin Wendt, founder and senior resource analyst at Mine Life Pty. “Institutional funds might have one view on gold which is negative but, on the other hand, it seems as though the moms and dads and smaller investors have been buying,” he added.
Last year, the yellow metal dropped by 28.63%, the most since 1981, as investors focus on China after the country used the sinking prices to boost its buying hunger for Gold.
Gold shipments from Hong Kong to China climbed to an estimated 1,017 tons in the first 11 months of the year, according to reports from the Hong Kong Census and Statistics Department. Estimates from the World Gold Council (WGC) showed that China overtook India’s position as the world’s biggest bullion consumer last year.
Visit www.hymarkets.com to find out more about our products and start trading today with only $50 using the latest trading technology today.
The post Gold Futures Rises as Asian Demand Expected to Increase appeared first on | HY Markets Official blog.
Article provided by HY Markets Forex Blog