Gold today climbed to the highest level this month after the dollar’s decline and bullion’s advance above USD 1,320 spurred more purchases.
Gold rose 1.5 per cent to USD 1,333.94 an ounce, the highest since July 31.
It reached a three-week low of USD 1,273.02 an ounce on Aug 7. The US Dollar Index, a measure against 10 major currencies, rose for the first time in more than a week after reaching a seven-week low on Aug 8.
Gold fell into a bear market in April and is down 21 per cent this year as some investors lost faith in the metal as a store of value and inflation failed to accelerate amid unprecedented money printing by central banks.
Gold exchange-traded product holdings rose 1.4 tonnes to 1,948.3 tonnes on Aug 9, the first increase this month.
China’s gold consumption rose 54 per cent to 706.4 tonnes in the first half of 2013 from a year earlier, the China Gold Association said today. Gold-bar purchases surged 87 per cent while jewellery demand gained 44 per cent, it said.
Silver gained 2 per cent to USD 20.96 an ounce, reaching USD 21.29, the highest since June 20.