Aug. 5 (Bloomberg) -- Gold climbed in New York on speculation prices below $1,300 an ounce will spur demand before the Indian wedding season and China’s Golden Week.
Gold is trading at a premium in Shanghai over London, signaling more demand for gold out of London, said Adrian Ash, head of research at BullionVault, an online service for investors to trade and store gold and silver. India’s wedding season in September, its Diwali holiday in October and China’s Golden Week in October are associated with gold buying.
“We expect a very healthy rebound in physical demand in the last four months of the year,” said Nikos Kavalis, an analyst at Metals Focus in London. “The premium in Shanghai might be a sign that the inventory overhang in China we saw earlier this year is not a big issue.”
Gold futures for December delivery rose 0.3 percent to $1,292.40 an ounce by 7:45 a.m. on the Comex in New York after falling 0.5 percent yesterday. The price of the metal for immediate delivery in London climbed 0.3 percent to $1,291.55.
Silver for September delivery was little changed at $20.235 an ounce after dropping 0.7 percent yesterday. Some traders consider silver more interesting to buy and sell than gold because it’s more volatile, Ash said. Open interest in reportable gold futures and options dropped 67,962 to 575,402 by July 29, according to U.S. Commodity Futures Trading Commission data. That’s the lowest since September 2009, Ash said.