Gold gains as stimulus outlook tempers ETP drop

London, May 3. Gold today recorded its second weekly advance, the best showing since March, as optimism that global stimulus will be sustained countered a reduction in bullion-backed exchange-traded products. Gold rose by 0.8 per cent to USD 1,479.20 an ounce. The metal is 1.1 per cent higher this week on signs of increased physical purchases, after gaining 4.1 per cent last week. Silver also added 1.72 per cent to USD 24.24 an ounce. The European Central Bank cut borrowing costs to a record while saying monetary policy will remain accommodative for as long as needed. The US Federal Reserve maintained the pace of its monthly asset purchases. Gold rallied for 12 years through 2012 as central banks around the world including the Fed ramped up stimulus to spur growth. ETP holdings fell to 2,262.665 metric tonnes, the least since October 2011, and are 0.9 per cent lower this week.