Gold exchange traded funds were set for a higher open Friday as markets eyed the November nonfarm payrolls report. The precious metal was getting a lift from reports Bank of Korea raised its gold holdings and expectations the European Central Bank will boost liquidity to address the debt crisis.
SPDR Gold Shares (NYSEArca: GLD) was up fractionally in premarket trading.
Bank of Korea has increased its gold holdings for the second time this year as investors seek safe havens and diversification amid Europe’s debt turmoil, Bloomberg reported Friday. [Gold ETFs Boosted by Currency Debasement Fears]
“We’re buying gold to improve profitability against risks,” said Lee Jung, head of the investment strategy team at the bank’s Reserve Management Group, in the story. “This is part of our mid- and long-term strategy to diversify our portfolio and enhance efficiency of asset management.”
Gold prices are getting a boost from speculation the ECB will be forced sooner or later to pump liquidity into the financial system on a “massive scale,” Reuters reported Friday before the jobs report.
European leaders meet at a summit next week and markets are hoping for a deal to address the sovereign debt and bank crisis. [A Technical Look at Gold ETFs]