Gold rose, ending the longest slump in 19 weeks, on speculation that demand for bars and jewelry will increase in China after futures touched a seven-week low. ANZ Banking Group said Wednesday its gauge of demand increased late last month in China, the world’s biggest buyer. Iraq’s central bank plans to process 11 metric tons for public sale, and will import bars to sell to goldsmiths.
The outlook for reduced U.S. monetary stimulus and higher borrowing costs helped push futures Tuesday to the lowest since Feb. 11. “People are betting on increased physical buying and bargain hunting at these levels,” said Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago. “This may be temporary, as prices could head lower because of expectations of higher interest rates.”………………………………..Full Article: Source