Gold extends gains on strong physical demand

07:50, August 05, 2010      

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Gold futures on the COMEX Division of the New York Mercantile Exchange extended gains for the sixth consecutive day on Wednesday, on bargain buying and strong physical demand for the bullion. Silver and platinum both inched down.

The most active gold contract for December delivery rose 8.4 dollars, or 0.7 percent, to finish at 1,195.9 U.S. dollars per ounce. Earlier, the price reached 1,205.50 dollars, the highest level for a most-active contract since July 16.

China's move to broaden its gold markets by allowing more commercial banks to import and export gold continued to push up gold price on Wednesday, as investors anticipated that the shift in China's policy toward gold trading would greatly boost the country's demand for the precious metal.

Meanwhile, strong physical demand from Asian buyers also offered a strong support to gold price on Wednesday, as Indian manufacturers typically restock inventories to meet the demand for gold before the start of India's wedding season.

September silver was down 14.4 cents, or 0.8 percent, to settle at 18.278 dollars per ounce. October platinum dipped 0.9 dollars to settle at 1,586.2 dollars per ounce.



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