 "Gold advances on strong physical demand")
London: Gold today climbed for the first time in three days on speculation that physical demand was strengthening, while low interest rates and central bank easing may also benefit bullion.
Gold gained 0.9 percent to $1,626.80 an ounce and silver gained 2.1 percent to $29.64 an ounce.
The US Mint sold 79,000 ounces of gold coins so far in January, topping the total sales in December of 65,500 ounces.
China, Taiwan, Hong Kong, Vietnam and Thailand may boost gold purchases for gift-giving ahead of the Lunar New Year. The week-long New Year break starts 23 January.
[caption id=“attachment_178306” align=“alignleft” width=“380” caption=“The European Central Bank is likely to keep its benchmark rate at one percent on 12 January. AP”]
[/caption]
The European Central Bank is likely to keep its benchmark rate at one percent on 12 January. The ECB cut the rate to one percent in December, matching the record low, and stepped up efforts to flood the banking system with cash as region’s sovereign debt crisis threatened to engulf Italy and Spain.
Physical bullion demand from India, the biggest buyer, may also gain as the nation’s policy makers rein in inflation, boosting the rupee after 2011’s 16 percent slump.
Demand in India has been “less impressive” than in China, the second- biggest market, as the weak rupee boosted local prices to an all-time high last year, RBS said.