London: Gold rose to a two-week high yesterday and platinum group metals rallied to their highest in over twenty months on the back of fresh investment money poured into commodities, signalling another quarter of gains.
A shutdown this week of a smelter at the world's third biggest platinum producer Lonmin, has also buoyed platinum to its highest since August 2008 and palladium to its loftiest since March 2008.
Spot gold rose to $1,118.75 an ounce, its highest since March 19 and was at $1,117.65 an ounce by yesterday morning, versus $1,112.80 an ounce late in New York on Wednesday.
"Commodities as a group are extremely strong at the moment," said RBS metals analyst Stephen Briggs. "We had lots of quarter-end massaging going on and that has set us up for probably more money coming into commodities at the beginning of the second quarter," he said.
Bullion ended the first quarter more than one per cent higher on buying driven by volatile currencies, firm stock markets and oil as well as euro zone debt but it has struggled to sustain gains since hitting a record above $1,200 an ounce last December.
"I think gold should eventually break above $1,125 an ounce. Physical demand is still good and there's more investment money coming in," Afshin Nabavi, head of trading at MKS said.
Thai jewellers were active but physical dealers noted light selling by Indonesian consumers. India, the world's largest consumer, made some inquiries as the wedding season was about to start soon.
