Gold Is Seen Extending Advance as Stimulus Prompts Demand
Gold futures rose the most in more than a week on speculation that moves by central banks to bolster their economies will spur demand for the metal as a store of value.
The Federal Reserve announced a third round of U.S. monetary stimulus on Sept. 13, and the Bank of Japan said last week it will add to a fund that buys assets. Gold may rise to $2,000 an ounce next year mainly on economic risks, Eugen Weinberg, the head of commodity research at Commerzbank AG in Frankfurt, said today at a Bloomberg LiveINSIGHTS conference.
“Gold is rising on all the announcements we have heard from various central banks,” Fred Schoenstein, a trader at Heraeus Precious Metals Management in New York, said in a telephone interview. “The trend remains bullish.”
On the Comex in New York, gold futures for December delivery rose 0.6 percent to $1,774.70 an ounce at 10:50 a.m. A close at that price would mark the biggest gain for a most- active contract since Sept. 13.
Kazakhstan expanded its gold reserves for a 13th consecutive month in August, buying 1.4 metric tons, data on the International Monetary Fund’s website showed. South Korea bought 16 tons in July, and Paraguay purchased 7.5 tons that month, the data show.
Silver futures for December delivery rose 0.8 percent to $34.27 an ounce on the Comex.
To contact the reporter on this story: Debarati Roy in New York at email@example.com
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org