Gold advanced for the third time in four sessions on speculation that central banks will take steps to bolster their economies, increasing the appeal of the precious metal as a store of value.
Investors expect European Central Bank President Mario Draghi to flesh out a plan to shore up Spanish and Italian bonds. The Bank of Japan (8301) started a two-day policy meeting amid speculation that it may weigh alternative monetary policy, and China’s yuan climbed to a one-week high against the dollar on bets that the government will take steps to revive economic growth.
“The notion that there could be some kind of coordinated action by central banks is boosting gold,” Matt Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview.
Gold futures for December delivery gained 0.2 percent to settle at $1,616 an ounce at 1:37 p.m. on the Comex in New York. The price has climbed 1.6 percent since Aug. 2.
Federal Reserve President Ben S. Bernanke may discuss policy options during an Aug. 31 speech in Jackson Hole, Wyoming. Today’s gold rally was limited after Fed Bank of Dallas President Richard Fisher said adequate economic stimulus already is in place.
The metal surged 70 percent from the end of December 2008 to June 2011 as the Fed kept borrowing costs at a record low and bought $2.3 trillion of debt in two rounds of so-called quantitative easing.
Silver futures for September delivery declined less than 0.1 percent to $28.075 an ounce in New York.
On the New York Mercantile Exchange, platinum futures for October delivery fell 20 cents to $1,410.20 an ounce. Palladium futures for September delivery slipped 0.3 percent to $586.50 an ounce.
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org