“Gold advanced in New York and London, trimming a second monthly decline, as lower prices lured buyers of the physical metal amid an extended drop in holdings in exchange-traded products. Silver also gained.
The U.S. Mint is on pace to sell 62,100 ounces of gold coins in May, 17 percent more than a year earlier, according to data released yesterday. The agency resumed taking orders for its one-tenth ounce gold coin yesterday, said Michael White, a mint spokesman. Sales were suspended in April while demand surged after prices tumbled. Gold has slumped 17 percent this year in London as investors slashed holdings in exchange traded funds amid speculation the U.S. Federal Reserve would taper asset purchases that helped bullion cap a 12-year bull run in 2012.
“In contrast to demand among institutional investors, who withdrew funds from the gold ETFs again yesterday, gold demand among retail investors thus remains extremely robust,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said in an e-mailed report today.
Gold for August delivery advanced 0.8 percent to $1,391 an ounce by 8:04 a.m. on the Comex in New York. The price headed for a 5.5 percent drop in May and a second monthly decline. Trading volumes were 98 percent higher than the average for the past 100 days for this time of day, according to data compiled by Bloomberg. Spot gold rose 0.8 percent to $1,391.56 an ounce in London. Prices fell 1 percent yesterday as U.S. economic data backed the case for a cut in monetary stimulus by the Fed.
