Gold Rises as ETFs Start to Buy Again

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Gold futures were up 0.3% at $2,353.8 a troy ounce, holding steady as ETFs started wading back into the market.

The precious metal has bounced back after being caught in a wider metals market sell-off, as traders booked profits and U.S. labor data raised growth outlook concerns, SP Angel analysts said in a note.

Exchange-traded funds, or ETFs, added 46,000 ounces to their holdings yesterday, reducing net sales in the year to date to 4.73 million ounces, SP Angel said.

“ETFs are now likely the primary catalyst for bullish gold momentum going forward, with a further slide in [U.S.] Government yields expected to push safe-haven investors into bullion,” SP Angel said.

Chinese gold buying also appears to have steadied, and persistent geopolitical tensions should encourage central-bank buying, analysts added.