Skip to main content


Main content ]]> ]]> ]]> Home Compare deals Finance news Managing money Investing Home & property Credit & loans Life stages Tools & guides Small business Home > Finance News > Markets > Gold rises more than 1pc Print

Gold rises more than 1pc | Updated: 5:14:18 AM, Friday April 26, 2013

Gold futures have climbed, taking cues from signs of strong physical buying of the metal as some investors saw its recent slump as a buying opportunity.

The most actively traded contract, for June delivery, rose $US14.90 ($A14.58), or 1.1 per cent, to settle at $US1,423.70 a troy ounce on the Comex division of the New York Mercantile Exchange.

Dealers of gold coins and bars in trading hubs world-wide have reported a sharp increase in activity following gold’s historic sell-off last week.

Some buyers, gold dealers and traders said, viewed gold’s two-session, $US200-an-ounce retreat as an appealing opportunity to buy the metal at prices not seen in more than two years.

‘People are saying ‘it’s finally down here, I have the opportunity’,’ said Frank McGhee, head precious metals dealer with Integrated Brokerage Services.

Some gold retailers have increased the premium above the gold price they charge consumers for products, and inventories of some products are running low.

‘I’ve been receiving calls from customers wanting to know where they can go to buy up gold coins and bars as jewellers have exhausted their stock,’ said Biju Joy, general manager of Dubai Gold Jewellery Group, a trade association.

The US Mint this week stopped selling its smallest-denomination gold bullion coins after the surge in demand ran down inventories.

In a memo to coin dealers on Monday, the Mint said year-to-date demand for one-tenth-ounce coins was up 118 per cent compared with the same period last year, and it had suspended sales of the product to allow time to replenish inventories.

The Mint also sells gold bullion coins in one-ounce, half-ounce and quarter-ounce sizes. Total Mint gold sales this month stand at 183,000 ounces, according to data on the agency’s website, up from 20,000 ounces in all of April 2012.

Still, some investors remain wary of holding gold.

Investors in gold-backed exchange-traded funds have consistently cashed out since gold’s nine per cent decline on April 15. Such funds currently hold about 2,230 metric tons of gold, according to UBS, down 11 per cent so far in 2013.

‘Can retail (coin buyers) really turn the market around?’ said McGhee.

‘Several million ounces have come out of the ETFs, somebody has to buy it.’



Leave a comment

Follow this conversation Name: E-mail: Your URL: Comments: Follow any further comments to this article. All comments are moderated. Enter security code:  Security code

Follow this conversation

Leave a comment Your e-mail: You will be emailed when any additional comments are approved by the moderator. You are only subscribing
to comments made to this article. You may unsubscribe via the link provided on notification emails.

Related news

Australian shares open higher Australian shares open higher

The Australian share market has opened more than one per cent higher.

$A higher after strong US jobs data $A higher after strong US jobs data

The Australian dollar is higher after a strong US employment report for April.

Alumina CEO get first strike Alumina CEO get first strike

Alumina shareholders have delivered a first strike vote against its executives’ pay …

Boral earnings continue to fall Boral earnings continue to fall

Building products maker Boral says its earnings continue to be weaker than expected.

ASX firm at noon on US jobs boost $A higher after US jobs figures NZ deficit shrinks faster than expected Fortescue opens first stage of mine AACo writes down herd value by $43m Australian bonds lower after US data Base metals enjoy strong performance AGL cuts profit forecast

Compare deals

Get the right credit card credit cards Compare credit cards Get a sweeter savings rate savings rates Compare savings accounts Boost your savings safely term deposit safety Top rate term deposits Go  

Sign up to receive the latest finance news. Email: Subscribe
Connect with us on: Connect with FacebookFacebook Connect with TwitterTwitter Connect with LinkedInLinkedIn Connect with Google PlusGoogle+

BigPond on Facebook

Mozo powered rates widget

Tools & calculators

Currency converter &raquo

Convert: From: To:
Convert Amount: Data supplied by Morningstar, based on a 30min delay.
  BigPond Sport, Movies, Music and Games downloads, video streams and editorial content are unmetered for most BigPond Broadband members. Sitemap | FAQ | Contact Us Terms of Use & Disclaimer – Please read

TelstraBigPond ]]> ]]> ]]>