Gold rebounds from 2-week low as Swiss, China data signal demand

LONDON: Gold rebounded from a two-week low yesterday, on signs of increased physical demand.

Gold rose 1.7 per cent to USD 1,209.74 an ounce and silver added 2.6 per cent to USD 16.15 an ounce.

Swiss gold exports rose to the highest level this year and flows from the UK suggest Swiss refineries are working at full capacity to meet demand from Asia, UBS group said.

Trading of the Shanghai Gold Exchange's benchmark bullion spot contract jumped to the highest since April 2013.

Bullion fell yesterday amid concern that the Federal Reserve is moving closer to raising interest rates, cutting the metal's appeal as a store of value.

Meanwhile, Fed officials dropped a pledge to keep borrowing costs near zero percent for a considerable time.

Switzerland exported 232.3 metric tonnes last month, government data showed today. India, China and Hong Kong accounted for 63 per cent of the overseas shipments.