Gold up as world waits on Draghi
After dipping from near a six-month high yesterday, gold today rose as speculation of a central bank bond-buying scheme to tackle sovereign debt boosted the euro, increasing demand for bullion as the dollar declined.
Platinum rallied to its most expensive in more than four months.
Spot gold rose as much as 0.3 per cent to $US1698.65 an ounce, and was at $US1697.60 at 10.36am in Singapore.
Assets in exchange-traded products expanded to a record 2470.67 metric tonnes yesterday, data compiled by Bloomberg show.
The euro traded 0.3 per cent from a two-month high against the dollar after two central bank officials said that European Central Bank president Mario Draghi will announce the purchases at a policy-setting meeting today.
The bond-buying program will be sterilised to assuage concerns about printing money, according to the two.
Gold tends to trade inversely to the US currency.
‘‘The market is optimistic about the ECB’s plan to rescue the region,’’ said Wang Xiaoli, chief investment strategist at CITICS Futures Co, a unit of China’s biggest listed brokerage. ‘‘Gold is getting a lift from the strength in the euro.’’
December-delivery gold gained as much as 0.4 per cent to $US1700.90 an ounce on the Comex in New York and was at $US1699.30. The price has risen 8.5 per cent this year.
The ECB has been at the forefront of fighting the European debt crisis, which has so far pushed five countries into bailouts and driven the 17-nation euro economy to the brink of recession.
In July, Mr Draghi said he would do ‘‘whatever it takes’’ to defend the euro.
Cash platinum rose for a fifth day, climbing as much as 0.8 per cent to $US1583.50 an ounce, the highest price since April 23, and was last at $US1582.50.
Investors are buying platinum at the fastest pace since 2010 after disruptions at mines in South Africa, the largest producer, caused the biggest loss of supply in at least seven years.
Purchases through exchange-traded products were the most in 20 months in August, data compiled by Bloomberg show.
Spot silver gained as much as 1.2 per cent to $US32.635 an ounce, the highest level since April 4, before trading at $US32.595.
Palladium advanced for a fifth day, adding as much as 0.4 per cent to $US647.25 an ounce, and was last at $US645.75.