Gold rises as Turkey's and Brazil's central banks are buying Gold along with some signs that purchases are rising in India, the world’s biggest buyer.
Brazil added to its Gold reserves for the first time since December 2008, and Turkey also raised its holdings. India tends to buy more at this time of year because of jewelry demand for the wedding season and festivals.
“More and more central banks are getting involved in the gold market”, David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “We are seeing some value buying after prices slumped, especially in India.”
Gold futures for December delivery advanced 0.8 percent to $1,715.90 at 10:08 a.m. on the Comex in New York. A close at that price would mark the biggest gain for a most-active contract since Oct. 4.
The festival season in India began with Dussehra yesterday and ends in November with Diwali, followed by weddings.
“Physical buying is starting on a strong footing today,” Edel Tully, an analyst at UBS AG in London, said in an e-mailed report.