The prices of precious metals increased following news that the International Monetary Fund finished selling some of its bullion reserves, Bloomberg reports.
"The last of the overhang has now gone," Peter Richardson, chief metals economist at Morgan Stanley in Melbourne, told Bloomberg. "The market will take that as a positive development."
Immediate-delivery gold increased 0.2 percent to $1,388.67 per troy ounce, an advancement of $3.07, shortly after noon in London. Though immediate-delivery silver remained stagnant at $29.3625 per troy ounce, both platinum and palladium rose. The former increased 0.3 percent to $1,733 per troy ounce, a rise of $5.90; the latter climbed 0.6 percent to $757.25 per troy ounce, an increase of $4.20.
The IMF announced on Tuesday that it sold more than 403 metric tons of gold as part of a program that started in September 2009. More than half of its gold was purchased by central banks of India, Sri Lanka, Mauritius and Bangladesh.
"Outside of the IMF sales, little other selling has materialized with the Euro-system banks selling remaining subdued," according to a report by Suki Cooper, an analyst with Barclays Capital in New York. "Gold's price reaction was muted in response to the news, but in the absence of the IMF sales, the sector is set to swing into a net buyer of gold."
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