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The U.S. Mint sold 42,000 ounces of gold coins so far this month compared with 18,000 ounces in all of December. In China, the largest consumer, volumes for the benchmark spot contract on the Shanghai Gold Exchange rose today to the highest level since Dec. 18.
European policy makers are focused on the fate of Greece, which triggered the region’s sovereign-debt crisis in 2009, as campaigning begins for a Jan. 25 election that Prime Minister Antonis Samaras said may lead to an exit from the 19-member euro zone region should the
opposition anti-austerity Syriza alliance win. The euro traded near an almost nine-year low.
“The precious metal is in demand as traders want to hedge their position against Greek-exit uncertainty,” Naeem Aslam, chief market analyst at Ava Capital Markets Ltd. in Dublin, said by e-mail today. While the chances of Greece leaving the euro zone are “very slim,” investors “do not want to put themselves under a situation where they are not hedged,” he said.
Bullion for immediate delivery advanced as much as 0.8 percent to $1,214.43 an ounce, the highest level since Dec. 16, and traded at $1,211.82 by 10:55 a.m. in London, according to Bloomberg generic pricing.
Gold for February delivery on the Comex climbed 0.6 percent to $1,211.60, with trading volumes about the average for the past 100 days for this time of day, according to data compiled by Bloomberg.
European Equities
After sliding 2.2 percent yesterday, European equities extended a selloff today as crude oil sank to the lowest level since 2009 and a gauge of euro-area services and manufacturing signaled economic growth slowed in the final quarter of 2014, supporting calls for more economic stimulus.Bullish wagers on the metal rose for the first week in three in the period ended Dec. 30, and assets in bullion-backed exchange-traded products rose last week for the first time in three weeks. Gold priced in euros rose to the highest level since September 2013, after advancing 12 percent last year.
“Gold benefits from an increase in risk aversion,” said Mark To, head of research at Wing Fung Financial Group, a trader and refiner in Hong Kong. “With crude oil below $50 and uncertainty building around Greece, equity markets have been dragged lower, triggering a flight to safety.”
Silver for immediate delivery rose 0.8 percent to $16.3112 an ounce, while platinum climbed 0.4 percent to $1,217.34 an ounce and palladium rose 0.7 percent to $800.05 an ounce, halting a six-day decline that was the longest since February.
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