Gold rebounded as the New Year begins to trade at 1231.50 adding $6.30 this morning after Thursday’s strong gains. Gold has climbed just under $30 since the year started just 24 hours ago. Gold tumbled 28 per cent in 2013 as money-printing by central banks failed to spur inflation, damping demand for a protection of wealth. Assets in bullion-backed exchange-traded products shrank for the first year since the first product was introduced in 2003 as the Federal Reserve said that it will reduce bond purchases this month amid an improving economy. China and India are the world’s largest gold users. There were many investors waiting to enter after the price dropped below $1,200. Short gold holdings, referring to bets on lower prices, jumped almost fourfold from October to Dec. 24, U.S. Commodity Futures Trading Commission data show. Precious metals steadied on Thursday but held near a six-month low touched in the previous session after prospects for a global economic recovery prompted investors to abandon the safe-haven metal. Gold’s gains come after it lost 28 percent in 2013, ending a 12-year bull run and posting its largest loss in 32 years. SPDR holdings moved down by 3.60 tonnes on Thursday to 795 tons. Gold prices are expected to remain higher for the day as year beginning dollar buying and subdued equity markets can push some buying for gold.
Platinum climbed as much as 1.5 per cent to $1,424.88 an ounce, the highest price since Nov. 19, and traded at $1,410.50. The rise extended yesterday’s 2.7 per cent advance, which was the most since October. Silver for immediate delivery rose as much as 1.3 per cent to $20.2828 an ounce, heading for a second weekly gain, and was at $20.1724. Palladium advanced 0.3 per cent to $732.60 an ounce, up 3 per cent and set for the best week since October.
Copper eased by 27 points as Chinese data confused traders. Copper is trading at 3.359 remaining well above its trading range in 2013. Copper prices remained in a range for the day as mixed manufacturing data coming from US, Italy and Spain kept the prices in a tight range. A stronger dollar internationally also pressured the copper prices. The metal used in power and construction fell 7.2 percent in 2013 but gained more than 4 percent in December. Today Japanese markets remained shut.