Gold in New York advanced for the second time in three days on speculation that China may take more steps to boost economic growth.
China may introduce “more proactive” policies to ensure stable growth, the China Securities Journal said in a commentary today. The Asian country will topple India this year as the world’s largest consumer because rising incomes will bolster demand, the World Gold Council has forecast. European leaders will meet tomorrow in another attempt to find a solution to the region’s debt crisis.
“The Chinese news is positive for gold,” Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “The gains will be limited as some investors are waiting for some kind of statement from the European leaders.”
Gold futures for August delivery rose 0.2 percent to settle at $1,578.40 an ounce at 1:47 p.m. on the Comex in New York. The precious metal has fallen 5.6 percent this quarter, heading for the biggest such decline since 2004, as the dollar gained and the Federal Reserve refrained from announcing further debt purchases.
Prices 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 dropped 0.4 percent to $27 an ounce on the Comex, extending this quarter’s drop to 17 percent, which would be the biggest loss since September 2008.
On the New York Mercantile Exchange, platinum futures for October delivery dropped 1.2 percent to $1,413.30 an ounce, retreating for the second straight day. Palladium futures for September delivery slumped 2.3 percent to $579.75 an ounce, falling the most since May 23.