“Gold gained for a third day in London as prices near the lowest in more than two years attracted jewelry buyers and global economic data disappointed.
Jewelry demand in India and China surged as consumers rushed to take advantage of the price drop. Retail sales tripled across China April 15-16, the China Gold Association reported. The U.S. Federal Reserve, which buys $85 billion of securities a month to support economic recovery, said in its Beige Book business survey that the U.S. expansion remained moderate. Data this week showed slower-than-expected Chinese economic growth and European car sales slid to a 20-year low.
“Due to the latest turn to bearish macro sentiment, a further fall in gold has been prevented for now,” Bjarne Schieldrop, the Oslo-based head of commodity research at SEB AB, said today by e-mail. A surge in physical demand is “positive for gold and supportive,” he said.
Immediate-delivery gold climbed 0.8 percent to $1,387.23 an ounce by 9:50 a.m. in London trading. Prices fell to $1,321.95 on April 16, the lowest since January 2011. Gold for June delivery added 0.4 percent to $1,387.90. Futures trading volume was more than double the average for the past 100 days for this time of day, according to data compiled by Bloomberg….”
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