Gold heads for first weekly gain in four as ETF holdings expand

Gold headed for its first weekly gain in four as investors continue to boost holdings in exchange-traded funds backed by the metal.

Bullion for immediate delivery traded at US$1,264.61 (£1,033.95) an ounce at 9:29am in Singapore, from US$1,265.76 (£1,034.89) on Thursday, according to Bloomberg generic pricing. The metal is up 1.1 per cent this week.

Gold has rallied 19 per cent this year, partly due to the Federal Reserve’s caution over raising interest rates, which makes non-interest yielding bullion more attractive.

While Fed funds futures show the probability of a rate hike in December climbing to 68 per cent from 66 per cent a week ago, gold-backed ETFs continue to expand.