Gold Futures May Gain Amid Increasing Physical Demand for Metal

Monday, 29 October 2012
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Published in Gold Investing

Gold may gain for the second time in three sessions amid signs of improving demand in India, the world’s biggest consumer.

Physical dealers in India cited a “notable pickup” in purchases during the past few sessions amid lower domestic prices, Barclays Plc said today in a report. Indians tend to buy more at this time of year because of jewelry demand for the wedding season and festivals. Holdings in exchange-traded products backed by the metal rose to a record 2,585.418 metric tons on Oct. 26, data tracked by Bloomberg show. As of Oct. 26, prices fell 3.5 percent this month.

Positive-Pullback

“Indian demand is showing some strength,” Lance Roberts, the chief executive officer of Streettalk Advisors LLC in Houston, said in a telephone interview. “We are definitely seeing some value-based buying.”

Gold futures for December delivery rose 0.1 percent to $1,712.90 an ounce at 9:48 a.m. on the Comex in New York. Prices gained 9.3 percent this year through Oct. 26.

CME Group Inc., the owner of Comex, said the New York trading floor will be closed today as Hurricane Sandy headed toward the city.

Silver futures for December delivery dropped 0.3 percent to $31.945 an ounce on the Comex.

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