Gold Advances as N.Y. Factory Slump Signals More Fed Stimulus
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Gold futures advanced for a second session after a report showed manufacturing in the New York area contracted more than expected, bolstering prospects for expanded U.S. monetary stimulus from the Federal Reserve.
The Fed Bank of New York’s general economic index dropped to minus 8.1, wider than the minus 1 median forecast in a Bloomberg survey of economists. The central bank pledged last week to buy $45 billion a month of Treasury securities starting in January, expanding its asset-purchase program, and linked the outlook for its main interest rate to unemployment and inflation.