Exchange traded funds tracking gold prices rose Tuesday as the metal reclaimed $1,800 an ounce and Italian bond yields climbed after Italian Prime Minister Silvio Berlusconi failed to gather a majority backing in parliament on the budget.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) was fractionally higher on speculation Berlusconi may face a confidence vote.
Italian bond yields are trading near 7%, a level that could mark the point where the country is unable to afford to borrow in the public markets, The Wall Street Journal reported.
Separately, China’s gold imports from Hong Kong rose 30% in September from the year-ago period.
Mainland China bought 57 metric tons from Hong Kong in September, up from 43.7 tons in August, Bloomberg reported.