Gold today gained on speculation that Federal Reserve Chairman Ben S Bernanke will hint at fresh stimulus measures to bolster the US economy in a speech tomorrow and as investor holdings climbed to record.

The precious metal rose by 0.2 per cent to $ 1,659.20 an ounce, while silver was little changed at $ 30.76 an ounce.

Gold has risen 2.8 per cent this month and is set for the biggest gain since January. Prices reached a four-month high of $ 1,676.90 on August 27 on speculation that the Fed will embark on a third round of debt purchases.

Exchange-traded holdings now exceed Italy’s 2,451.8 tonnes and ETPs constitute the third-largest hoard compared with national reserves, according to International Monetary Fund.

Exchange-traded product holdings expanded 0.1 per cent to a record 2,460.46 tonnes.

(This article was published on August 30, 2012)
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