Gold advanced, poised for a 10th annual gain, as investors sought to protect their wealth against accelerating consumer prices and declining currencies. Silver, platinum and palladium headed for second yearly advances.
Bullion for immediate delivery rose as much as 0.4% to $1,410.30 U.S. an ounce and traded at $1,409.93. Futures for February delivery gained 0.3% to $1,410.10 U.S. an ounce on the Comex in New York.
Gold has jumped 29% this year after governments spent trillions of dollars and kept interest rates low to bolster economies after the worst global recession since World War II, fueling inflation and driving currencies lower. Bullion has also reached all-time highs in British pounds, euros, Swiss francs and yen this year.
Assets of gold in exchange-traded products expanded 17% this year, reaching 2,097.49 tons yesterday, according to data compiled by Bloomberg from 10 providers. Surging demand drove prices to a record $1,431.25 U.S. an ounce on Dec. 7.
Gold imports by China, the world's second-largest consumer and biggest producer, jumped almost fivefold in the first 10 months from the entire amount shipped in last year, the Shanghai Gold Exchange said, driving prices to record levels. Bullion on the Shanghai Futures Exchange reached 314 yuan a gram on Nov. 9, the highest level since the exchange started trading the metal in January 2008.
Related Stories
