Gold futures rise amid physical demand

TradingPub Admin | May 8, 2013

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Gold scheduled for June delivery was up 1.7 percent at $1,473.70 an ounce at 1:46 p.m. on the Comex in New York, according to Bloomberg. The increase represented the largest one-day gain for a most-active contracts since April 25.

This came after data provided by the government of Hong Kong on May 7 indicated that the city's gold imports surged by more than 100 percent to reach their highest level on record during the month of March, the media outlet reports.

In addition, a factor that was cited as potentially impacting contracts for the price of the precious metal was the depreciation of the U.S. dollar relative to the 17-nation euro, according to Reuters.

"Indian physical demand is also strong and the combined response by consumers and retail investors to the plunge in prices since mid-April is absorbing a portion of the liquidation in the gold-exchange traded funds," James Steel, chief precious metals analyst at HSBC, told the news source.

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