Gold use in India, the world’s biggest buyer, may climb for the first time in three years as rising incomes and inflation boost investment demand, undermining efforts to narrow a record current-account deficit.
Copper, oil and corn fell while gold rose to a record as a lack of progress in raising the U.S. debt ceiling boosted concern the world’s largest economy may default, hurting commodities demand and increasing demand for a haven.
Platinum and palladium prices may jump this year as a rebound in U.S. automobile sales boosts demand for the metals used in catalytic converters, said James Steel, the chief commodities analyst at HSBC Securities USA Inc.
Gold climbed for a third day, poised for a second monthly advance, and holdings in exchange-traded products rose to an all-time high as investors sought to protect their wealth against debt risks in Europe and the U.S.
Silver assets in exchange-traded products are poised to expand to a record, joining the biggest- ever hoards of gold and platinum, as increased stimulus from the world’s central banks spurs investors to amass precious metals.