Gold Climbs as Fed Official Signaled Possiblity of More Stimulus

  • Fed's Kocherlakota sees ways to lower interest rates further
  • "Lower interest rates are always positive for gold:" Leighton
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Gold futures gained for the first time in a week as a Federal Reserve official signaled the possibility of more monetary stimulus, boosting bullion’s appeal as a hedge against possible inflation.

Minneapolis Fed President Narayana Kocherlakota sees ways to lower interest rates further, citing asset-purchase tools, he saidBloomberg Terminal in an interview Friday with Bloomberg Television. Gold fell in the previous two months as a resilient U.S. economy spurred speculation that officials would start tightening monetary policy.