Australia ANZ bank hires team to grow gold trade

An office worker leaves an ANZ bank branch in central Sydney May 27, 2009.

SYDNEY (Reuters) - Australia's ANZ Bank said on Friday it was expanding its commodities operations deeper into Asia, after hiring a team of physical gold distribution, treasury and funding specialists from Western Australia's Perth Mint to join the bank's commodities business.

Gold prices zoomed to a record high $1,248.15 an ounce on Wednesday on fears the 110 billion euro ($137.8 billion) European rescue package will not solve the euro zone debt crisis as more investors piled into safe-have bullion.

The team of about 10 traders had been working under a three-way venture that was dissolved earlier this year between the mint, Newmont Mining unit Gold Alliance and refining group Johnson Matthey.

"The team will join the business from 1 June and will be based in ANZ's Perth office," an ANZ spokesman said.

Beefing up its commodities desk is part of a strategy by Australia's fourth-largest bank to expand in India and across Asia where personal wealth is growing and demand for gold is rising.

Also, in India, financial institutions typically supply gold directly to jewellers and wealthy clients investing in gold, market segments ANZ wants to tap.

January-to-April Indian gold imports are up 74 percent to 126 tonnes year on year, according to the Bombay Bullion Association.

"The team will help significantly expand ANZ's existing commodities offering, which includes specialist products across oil, precious and base metals, coal, electricity and agriculture," the spokesman said.

Gold investments have increased sharply in recent weeks due to uncertainty over debt problems facing Greece, Spain and Portugal will spread deeper into the 27 member European Union.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, stands at a record high of 1,209.499 tonnes as of May 13.

(Reporting by James Regan and Narayanan Somasundram; Editing by Ed Davies)