Gold receives second day push by Asian markets
Gold has settled above $1144.59 as it climbed for the second consecutive day this morning, encouraged by further signs of rising inflation from China's and India. Yesterday's decision from India to raise interest rates also contributed to the rise, while demand no precious metals is expected to get stronger with the continuous revival of Asian economies.
Today's trading witnessed gold gaining 0.3% to reach $1145.40, silver climbing 0.7% $17.976 and platinum adding 0.6% to $1725.00. Palladium had also gained to climbed 0.6% to $554.75.
Precious metals benefited from the data released by China and India, as these two countries are expected to lead the economic recovery as they will be the main pillars nourishing the global economy.
China has tightened its house credit and mortgage policies after house prices in March climbed a record 11.7% in more than 70 cities, this triggers the alarm of inflationary threats when gold is preferred as a safe haven against such risks.
India is trying to control the rise in consumer prices by hiking the benchmark interest rate for the second successive time in a month. CPI by industrial workers had risen by 14.9% in February compared to the same period last year, while national CPI climbed to 17 month highs of 9.9%, as this rise in prices is accompanied by a vast first quarter expansion in the economy.
China and India are expected to boast the greatest economic expansions in the world with China projecting 10% growth and India 8%. This underscores the fact that Asian economies are pioneering the rest of the world's revival.
S&P GSCI closed at 540.22 in evening trading after adding 5.33 points, while RJ/CRB closed at 275.78 with a total gain of 2.55 points.
Gold futures due June climbed 0.61% to $1146.100 at 2:44 EST, whereas silver futures gained 0.95% to reach $17.990.