Gold Futures Gain for Third Day on Chinese Stimulus Speculation

Gold futures advanced for a third straight day on speculation that China may take more steps to boost economic growth, increasing demand for the precious metal as a store of value.

China’s exports rose 1 percent in July from a year earlier, compared with the 8 percent median estimate in a Bloomberg survey and 11.3 percent in June. The nation’s new local-currency loans were 540.1 billion yuan ($85 billion) last month, the People’s Bank of China said. That compared with the median estimate of 700 billion yuan in a Bloomberg survey.

“Renewed hopes for more monetary stimulus from PBOC are providing some support for gold,” Standard Bank Plc said in a report e-mailed today.

Gold futures for December delivery climbed 0.2 percent to settle at $1,622.80 an ounce at 1:41 p.m. on the Comex in New York, extending the weekly gain to 0.8 percent. The metal has risen 3.6 percent this year.

Silver futures for September delivery slipped 0.1 percent to $28.062 an ounce in New York.

On the New York Mercantile Exchange, platinum futures for October delivery dropped 0.9 percent to $1,399.90 an ounce, extending the weekly loss to 1 percent. Palladium futures for September delivery retreated 0.8 percent to $582.20 an ounce.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.