Gold rose in New York on speculation that policy makers will take measures to stimulate economic growth as finance ministers and central bank governors from the Group of Seven nations plan to discuss Europe’s debt crisis.
Bullion for August delivery rose as much as 0.7 percent to $1,624.80 an ounce on the Comex in New York and was at $1,620.10 by 11:21 a.m. in London. Economist Dennis Gartman said he’s adding to his gold holdings and selling equities.
The G-7 finance ministers and bankers plan to hold telephone discussions today ahead of a summit of leaders from the Group of 20 in Los Cabos, Mexico, June 18-19. U.S. President Barack Obama last week blamed European leaders for slowing U.S. job gains, saying they haven’t done enough to resolve the crisis that is now in its third year.
“We’ve every expectation that the monetary authorities will, and indeed must, err upon the side of further aggressive accommodation, which in the end shall benefit both gold and equities,” Gartman wrote in his daily letter.
Gold for immediate delivery was little changed at $1,618.48 an ounce in London. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, were unchanged at 1,273.88 metric tons yesterday, after rising on June 1 for the first time since May 24, the company’s website showed.
Gold futures lost 1.5 percent in the past month as the U.S. Dollar Index, a six-currency gauge of the greenback’s strength, rallied 4.2 percent in the same period.
“Gold has been trying to re-assert itself as a safe haven; however, the dollar’s strength will continue to act as a resistance to rising prices,” said Feng Liang, an analyst at GF Futures Co., a unit of China’s second-largest listed brokerage.
Spot silver was little changed at $28.2525 an ounce in London. Platinum for immediate delivery climbed 0.8 percent to $1,439.50 an ounce. Palladium gained 0.3 percent to $613.86 an ounce.