Gold advances on Russian purchases

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Gold advances on Russian purchases

Gold futures gained for a second straight day in New York as Russia’s central bank increased holdings of the precious metal.

Russia’s central bank raised its holdings to 29.5 million ounces last month, from 29.3 million ounces at the end of May, according to a statement published on its website today. Central banks may buy more of the precious metal this year than the purchases of 456 metric tons in 2011 as countries diversify their reserves, according to the World Gold Council. Prices have declined 1.3 per cent this month.

“Gold gets a boost every time there are reports that central banks are increasing their holding,” Pratik Sharma, a fund manager at Boca Raton, Florida-based Atyant Capital Management Ltd., said in a telephone interview. “Also, we are seeing some value-based buying.”

Gold futures for August delivery rose 0.2 per cent to settle at $US1,582.80 an ounce at 1:45 p.m. on the Comex in New York, narrowing this week’s loss to 0.6 per cent.

Silver futures for September delivery climbed 0.3 per cent to $US27.302 an ounce in New York. Prices slumped 0.2 per cent this week.

On the New York Mercantile Exchange, platinum futures for October delivery fell 0.6 per cent to $US1,414.50 an ounce. Palladium futures for September delivery dropped 1.5 per cent to $US576.10 an ounce.


Bloomberg

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