Gold Edges Up 0.15% Amid QE3 Talk, Heavy Chinese Imports


Gold is edging higher in the early going in New York, benefiting from some safe-haven flows out of equities, which continue to be battered by euro zone-related worries.

At 0925 a.m. ( ET ), U.S. gold futures for August delivery were up US$2.50, or 0.15%, at US$1,616.40.

There's continued speculation in the market that the Federal Reserve may soon be forced into another round of monetary easing to support the economy, boosting sentiment for gold given that could unleash inflationary pressures.

Meanwhile, the appetite among investors for gold, which has been hurt by weak consumption in No. 1 gold buyer India in recent months, was further supported by data on Monday that showed extremely elevated imports of the metal into China, according to a research note from HSBC. Imports of gold coins increased significantly to 1,876 kg in April from 5 kg in March, the note said.

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This article appears in: Investing , Commodities

Referenced Stocks: ET

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