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'Gold, silver turnover picks up in February'

LONDON: Daily average gold transfers rose sharply by 35 percent in February to their highest levels since October last year, clearing statistics issued by the London Bullion Market Association (LBMA) showed on Monday.

Daily transfers by the 12 LBMA clearing members rose to 30.0 million troy ounces from 22.2 million in January, up from 26.7 million a year ago.

"Producers stole the limelight in gold for the early part of February," the LBMA said in a statement. "The market opened at the lows, but Placer Dome's announcement that it had suspended its hedging programme ignited a sharp rally."

With other producers following suit and curtailing hedging activity, prices shot above $300 in very volatile trading, LBMA said.

The value of gold transfers in February also rose, up at $9.0 billion from January's $6.3 billion. The number of transfers was up by 17 percent to a daily average of 907.

Silver ounces transferred also rose, but the rate of increase was lower than gold's. Ounces tranferred rose 23 percent to a daily average of 172.7 million.

"Silver followed gold's rally at the beginning of the month, then followed gold's end-of-the-month sell-off even more enthusiastically," the statement said.

The value of silver transfers rose to $900 million versus $800 million in January, but was still well below last February's $1.5 billion.

The number of daily transfers was up slightly at 344 from 329, but down from last year's 514, the LBMA statistics showed.-Reuters