Gold up as industry delegates eye rebound
The yellow metal got a polish on Tuesday as the United States dollar retreated and following bullish comments from gold industry delegates meeting at the London Bullion Market Association in Singapore. According to them, gold is poised to become the best performing among precious metals, with its price projected to reach $1,347.4 a troy ounce next year, the Financial Times reported. Meanwhile, platinum is expected to come out as the worst performing member of the group.
The rise in the price of gold of 18.96% since the beginning of the year has been mainly driven by purchases within Exchange Traded Funds (ETFs) on the back of weak physical demand for the metal in India and China, its two largest consumers. Officials at today's meeting said they did notice a pick-up in demand from these two countries, as the bearish trend in gold brought a buying opportunity earlier this month. However, a limit to the upside potential still remains due to uncertainty over the outcome of the presidential elections in the U.S., as well as a possibility for interest rates to rise by the end of this year.
Gold added 0.3% to sell for $1,259 an ounce, while silver grew 0.88% to $17.58 per ounce at 3:02 p.m. CET. Palladium increased 0.41% to go for $639.48 an ounce, and platinum rose 0.87% to $940.64 per ounce.