Gold May Extend Climb Alongside Equities on U.S. Data, Earnings
Gold may gain for a second day after better-than-forecast company earnings and signs the U.S. economy is improving drove global equities higher.
Spot gold was little changed at $1,641.95 an ounce at 9:39 a.m. in Singapore after climbing 0.2 percent yesterday as the dollar dropped to a three-week low against a six-currency basket including the euro. June-delivery bullion was little changed at $1,642.40 an ounce on the Comex in New York.
New homes in the U.S. were sold at a 328,000 annual rate in March, Commerce Department data showed yesterday, beating the 319,000 pace forecast in a Bloomberg News survey. Apple Inc.’s profit almost doubled last quarter while AT&T Inc., the largest U.S. telephone company, posted better-than-estimated earnings, helping U.S. stocks advance. The MSCI Asia Pacific Index (MXAP) climbed for the first time in five days today.
“Gold prices rallied in line with a recovery in investor risk appetite and a modest increase in the euro,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “Hints of stabilization in the U.S. housing market may have helped boost equities thereby lending support to gold.”
The dollar held a drop versus the euro before Federal Reserve policy makers conclude a two-day gathering. The Federal Open Market Committee will release forecasts for interest rates, growth, inflation and unemployment later today.
Spot silver, this year’s best-performing precious metal, was little changed at $30.845 an ounce. Cash platinum climbed 0.2 percent to $1,547.75 an ounce, rebounding from its drop to a three-month low yesterday. Palladium, this year’s worst- performing precious metal, fell 0.2 percent to $667.50 an ounce.
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