Gold trades near one-week high on physical purchases

London, July 10. Gold today traded little changed near a one-week high in London on speculation that last quarter’s record slump is spurring more physical demand and as the dollar retreated from a three-year high. Gold added 0.1 per cent to USD 1,253.26 an ounce. It reached USD 1,260.70 yesterday, the highest since July 2. Silver, however, lost 0.5 per cent to USD 19.21 an ounce. It’s the worst performer in the Standard and Poor’s GSCI gauge of 24 commodities this year. The dollar fell 0.3 per cent against six major currencies after reaching the highest since July 2010 yesterday. Bullion slipped 23 per cent in the second quarter, reaching a 34-month low of USD 1,180.50 an ounce on June 28, and some buyers have seen prices as an opportunity to purchase, ABN Amro Group said today. Gold slid 25 per cent this year, wiping USD 61.8 billion from the value of gold exchange-traded product holdings, after some investors lost faith in the metal as a store of value as the Federal Reserve said it may slow bond buying this year.