Gold Advances in New York on China Stimulus Speculation
Gold slid to this month’s low yesterday after Federal Reserve minutes disappointed investors seeking a more definitive signal for further quantitative-easing measures. Data today showed China’s growth slowed for a sixth quarter to the weakest pace since the global financial crisis, putting pressure on Premier Wen Jiabao to boost stimulus to secure a second-half economic rebound.
“Chinese data was a bit worse than expected,” Afshin Nabavi, a senior vice president at bullion refiner MKS Finance SA in Geneva, said today by phone. “Everything is pointing towards more easing. That obviously should be good for gold.”
Gold for August delivery rose 1.1 percent to $1,581.90 an ounce by 7:54 a.m. on the Comex in New York. Prices reached $1,554.40 yesterday and are up 0.2 percent this week. Bullion for immediate delivery was 0.7 percent higher at $1,582.47 in London.
Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, fell 1.5 metric tons to 1,269.7 tons yesterday, the lowest level since May 23, data on the company’s website show.
The Bloomberg Consumer Comfort Index held at minus 37.5 in the week ended July 8. Some 86 percent of those surveyed in the U.S. said the economy was in bad shape, 21 percentage points higher than the average since 1985. Moody’s Investors Service cut Italy’s debt rating by two levels, saying the near-term economic outlook has deteriorated.
Silver for September delivery rose 0.9 percent to $27.3975 an ounce. Palladium for September delivery gained 0.6 percent to $581.71 an ounce. Platinum for October delivery was up 1.2 percent at $1,429.60 an ounce.
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