CHICAGO, May 20 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose modestly Tuesday when a report was released, saying the first-quarter demand for the precious metal remained largely the same from a year ago.
The most active gold contract for June rose 0.8 dollars, or 0. 06 percent, to settle at 1,294.6 dollars per ounce.
World Gold Council released a report Tuesday saying that gold demand made a robust start in 2014. Data, however, indicated that gold demand was placed at 1,074.5 tonnes in the first quarter, which remained unchanged year on year. The report also said gold demand for jewelry making gained moderately, aided by jewelry- making gold demand from China, which grew 10 percent to 570.7 tonnes in the first quarter, the largest first-quarter volume since 2005.
The report attributed the gain in jewelry-making gold demand to lower gold prices compared to that in the first quarter of last year and other season-related factors in markets. Although demand for bullion and coins fell 39 percent year on year, outflows from exchange-traded funds have slowed significantly in the first quarter compared with the same period of last year.
Market analysts say these changes have offset each other and likely have little impact on gold.
New York Fed President William Dudley said Tuesday that the U.S. central bank will take its time lifting interest rates, while president of the Philadelphia Fed Charles Plosser said U.S. economy is likely to accelerate growth in the second half of 2014 and into next year. This may trigger the Federal Reserve to raise interest rates sooner rather than later.
Silver for July delivery gained 4.6 cents, or 0.24 percent, to close at 19.399 dollars per ounce. Platinum for July delivery lost 1.3 dollars, or 0.09 percent, to close at 1,468.9 dollars per ounce.