Gold extends advance on potential Indian demand

Government accepts jewellers' demand to review tax on non-branded ornaments. Gold advanced for a third day, rebounding from the first weekly decline in three, after worse- than-forecast US jobs data and the reopening of jewellers in India after a strike boosted demand. Spot gold rose as much as 0.8 per cent to a one-week high of $1,648.80 an ounce, and was at $1,642.35 at 8.47am in Singapore. Bullion dropped 1.9 per cent last week as the dollar rallied 1.1 per cent against a six-currency basket on speculation that the Federal Reserve won't add more stimulus. In India, jewellers ended a 21-day strike on April 6 after a meeting with Finance Minister Pranab Mukherjee, who assured them that the government will consider their concerns on a tax on non-branded gold ornaments, according to the All India Gems and Jewellery Trade Federation. Indian demand last year was the world's largest on an annual basis, World Gold Council data show. June-delivery gold gained as much as 1.1 per cent to $1,648.20 an ounce on the Comex in New York, which was closed April 6 for a holiday. The metal, which traded at $1,643.30, has gained 4.6 per cent this year. Cash palladium, this year's worst-performing precious metal, rose as much as 1.7 percent to $652.50 an ounce, and last traded at $650.50. Holdings in exchange-traded products backed by the metal fell 0.3 percent on April 5, according to data compiled by Bloomberg, the most since January 17. Prices have declined 0.7 percent this year while gold, silver and platinum advanced. Spot silver was little changed at $31.885 an ounce, and platinum climbed 0.8 per cent to $1,616.50 an ounce. From: Gulfnews