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Gold advances as investors extend fund-buying spree to 14 days
[SINGAPORE] Gold extended Friday's gain, even as the dollar strengthened, as investors increased holdings in exchange-traded funds for a 14th straight day, the longest buying streak since March 7.
Bullion for immediate delivery added 0.4 per cent to US$1,278.06 an ounce by 10:10 am in Singapore, after climbing 0.8 per cent on Friday, according to Bloomberg generic pricing.
The metal has rallied 20 per cent in 2016 as investors sought a haven from equity turmoil at the start of the year and as the Federal Reserve dialed back expectations for US interest-rate increases amid uncertainty over global growth. Holdings in ETFs rose 7.6 metric tons to 1,822.35 tons on Friday, the highest since December 2013, data compiled by Bloomberg show.
The Bloomberg Dollar Spot Index climbed as much as 0.1 per cent to extend Friday's 0.5 per cent advance. Gold usually moves inversely to the greenback.
The rise in ETF assets "is an indication that perhaps the speculative end of the market is getting wind of another move in the gold price to the upside," David Lennox, an analyst at Fat Prophets in Sydney, said by phone.