Gold rose for the first time in four days on speculation that the Federal Reserve will buy more debt to boost the U.S. economy. Silver climbed to a seven-week high.
“I will be assessing the employment and inflation outlook in order to determine whether we should continue Treasury purchases into 2013,” Federal Reserve Bank of New York President William C. Dudley said in a speech in New York. Treasury Secretary Timothy F. Geithner began talks with congressional leaders on a budget accord.
“Talks about more stimulus measures being introduced are bullish for gold,” Bart Melek, the Toronto-based head of commodity strategy at TD Securities, said in a telephone interview. “The market is expecting some sort of resolution soon to avert the fiscal-cliff crisis” on U.S. spending and taxes, he said.
Gold futures for February delivery gained 0.6 percent to settle at $1,729.50 an ounce at 1:49 p.m. on the Comex in New York. The price slumped 1.9 percent in the previous three days.
The metal has climbed 10 percent this year, heading for the 12th straight annual gain, as the Fed announced stimulus measures.
Silver futures for March delivery increased 2 percent to $34.431 an ounce on the Comex. Earlier, the price reached $34.49, the highest since Oct. 8. The metal has advanced 23 percent this year.
On the New York Mercantile Exchange, platinum futures for January delivery rose 0.5 percent to $1,619.50 an ounce.
Palladium futures for March delivery gained 1.8 percent to $687.45 an ounce. Earlier, the price reached $692, the highest since Sept. 17.