Gold climbed for the first time in four days on speculation that slowing growth in China will spur policy makers to add to stimulus measures, and on increased demand in India, the world’s biggest precious metals consumer.
China’s growth slowed for a sixth quarter to the weakest pace since the global financial crisis, putting pressure on Premier Wen Jiabao to increase stimulus to secure a second-half economic rebound. Physical gold demand from India on July 11 was the strongest this month, UBS AG said yesterday. India was the biggest bullion consumer in 2011, according to the World Gold Council.
“People are betting on China announcing measures to stimulate growth,” Pratik Sharma, a fund manager at Boca Raton, Florida-based Atyant Capital Management Ltd., said in a telephone interview. “We are also seeing some value-based buying at these levels.”
Gold futures for August delivery rose 1.7 percent to settle at $1,592 an ounce at 1:37 p.m. on the Comex in New York. Prices climbed 0.8 percent this week.
Silver futures for September delivery advanced 0.8 percent to $27.369 an ounce in New York.
On the New York Mercantile Exchange, platinum futures for October delivery added 1.6 percent to $1,435.20 an ounce, the biggest gain since July 3. Palladium futures for September delivery increased 1.9 percent to $585.65 an ounce.