Gold gains on signs of demand in China

LONDON: Gold today rose for a second day on signs of increased demand in China before the country's Lunar New Year that starts next month.

Gold rose by 0.3 per cent to 1,663.50 dollar an ounce. It reached 1,625.85 dollar on January 4, the lowest since August 21. Silver also rose 0.3 per cent to 30.47 dollar an ounce.

Data showed this week that China's net imports of gold rose to a seven-month high in November, while volumes traded on the Shanghai Gold Exchange jumped.

Gold slid to a four-month low on January 4 after minutes from the Federal Reserve indicated that policy makers may end 85 billion dollar in monthly bond purchases some time this year.

Demand typically picks up in China from before Christmas and through the Lunar New Year in February. Net imports of gold, excluding flows from the mainland to Hong Kong, were 61,786.6 kg in November, data from the Census and Statistics Department of the Hong Kong showed.