By Tony C. Dreibus – Jan 18, 2011 2:28 PM ET
Gold rose in New York as this month’s price drop stoked demand from individual investors for bars and U.S. Mint coins.
Australia’s Perth Mint reported stronger demand as prices fell below $1,400 an ounce, Barclays Capital analyst Suki Cooper said in an e-mail today. Bar premiums reached two-year highs before the Chinese New Year, Cooper said, citing the mint. It produces about 6 percent of the world’s gold bullion.
“Retail investor interest in gold still remains healthy,” said Cooper. “Although short-term tactical investors have established fresh short positions in recent sessions, physical demand continues to cushion dips. Furthermore, the U.S. Mint has reported a strong start to gold-coin sales so far this year.”
Gold for February delivery added $7.70, or 0.6 percent, to $1,368.20 an ounce at 1:33 p.m. on the Comex in New York. Prices have dropped 3.7 percent in January.
The metal will average $1,400 this year, Morgan Stanley said in a report today, lifting its forecast by 6 percent.
Prices are “starting to look attractive to Asian buyers,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in an e-mailed report today.
Platinum futures for April delivery rose 0.7 percent to $1,828.30 an ounce on the New York Mercantile Exchange. Palladium futures for March delivery gained 2.5 percent to $810.45 an ounce. Silver futures for March delivery increased 2.1 percent to $28.912 an ounce on the Comex.
