Gold futures rose, capping the longest rally in six weeks, on speculation that the Federal Reserve and the European Central Bank will take further steps to spur growth.
The Fed starts a two-day meeting tomorrow and the ECB announces its next policy decision on Aug. 2. The Bank of England’s Monetary Policy Committee also convenes this week. Gold surged 70 percent from the end of December 2008 to June 2011 as the U.S. central bank kept borrowing costs at a record low and bought $2.3 trillion of debt in two rounds of so-called quantitative easing.
“Some people are expecting new stimulus measures from the Fed and the ECB this week,” Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said in a telephone interview.
Gold futures for December delivery rose 0.1 percent to settle at $1,624 an ounce at 1:42 p.m. on the Comex in New York. The price rose for the fourth straight session, the longest rally for a most-active contract since June 15.
The December contract climbed 2.2 percent last week after ECB President Mario Draghi pledged to do whatever it takes to preserve the euro.
Silver futures for September delivery gained 1.9 percent today to $28.033 an ounce.
On the New York Mercantile Exchange, platinum futures for October delivery climbed 0.3 percent to $1,411.80 an ounce. Palladium futures for September delivery increased 2.9 percent to $588.35 an ounce, the biggest gain since July 3.