- `Concerns about the global economy are back': RJO's Streible
- Silver, palladium and platinum also advance in New York
Market jitters are back, spurring investors to seek the safety of gold as the metal ended a five-session losing streak.
Gold futures gained the most in more than a week as tumbling Chinese producer prices reignited concerns about a deeper economic slowdown. Brazil’s debt rating was cut by Standard & Poor’s to junk, underscoring weakness in developing countries.
“Concerns about the global economy are back,” Phil Streible, a senior market strategist at RJO Futures, said in a telephone interview from Chicago. “Traders are quick on the trigger to get back into the safety of gold.”
Gold futures for December delivery gained 0.7 percent to settle at $1,109.30 an ounce at 1:48 p.m. on the Comex in New York, the biggest advance since Aug. 28.
The metal’s volatility has climbed in the past month as traders weighed the deterioration of the global economy against resilience in the U.S.
Futures dropped 3.3 percent in the previous five sessions partly as investors expect that American expansion is robust enough for the Federal Reserve to start tightening monetary policy. While higher rates reduce the allure of the precious metal, which doesn’t pay interest, prices have been supported near the $1,100 level, Streible said. Fed officials will meet next week.
Also on the Comex, silver climbed. Platinum was unchanged on the New York Mercantile Exchange, while palladium rose.