Gold price rises to two-week high

Gold prices hit a two-week high on Tuesday as the dollar fell on fading prospects of an imminent increase in US interest rates and expectations of stronger demand from the physical market.
Spot gold was up 0.5 percent at $1,240.51 an ounce at 1346 GMT, having touched $1,242.52, its highest since July 3.
US gold futures rose 0.2 percent to $1,239.80. The dollar sank to a 10-month low against a basket of currencies, making dollar-denominated metals cheaper for holders of other currencies, which could boost demand.
“We see gold averaging around $1,300 over the third quarter,” said ING commodities strategist Warren Patterson.
“Indian imports are rising after the very poor year last year. We expect that trend to continue even with the tax changes.”
Data from consultancy GFMS shows India’s gold imports climbed to an estimated 75 tons in June from 22.7 tons a year earlier. For the first half of the year, imports rose to 514 tons, up 161 percent year-on-year.
GFMS analysts said the jump was caused by Indian consumers buying ahead of July’s increase in the goods and services tax (GST) on gold to 3 percent from 1.2 percent.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, slipped to 827.07 tons on Monday, down from 828.84 tons on Friday.

Source: Arab News