Gold Gains in New York as Price Slump Prompts Purchases
(Corrects a.m. to p.m. in fourth paragraph.)
Gold rose the most in two weeks on speculation that China will announce more stimulus measures to support economic growth, boosting demand for the precious metal as a store of value.
Chinese industrial companies’ profits dropped for a fifth month in August, the National Bureau of Statistics said today. The Shanghai Securities News reported that there is speculation that the government will announce market-boosting measures. Gold has surged 11 percent this quarter as the Federal Reserve announced a third round of stimulus measures to increase growth.
“News out of China is positive for gold,” Carlos Perez- Santalla, a broker at PVM Futures Inc. in Hoboken, New Jersey, said in a telephone interview. “Prices continue to remain well supported from the Fed announcement.”
Gold futures for December delivery advanced 1.5 percent to settle at $1,780.50 an ounce at 1:42 p.m. on the Comex in New York, the biggest gain since Sept. 13. Prices have risen 14 percent this year.
Silver futures for December delivery climbed 2.1 percent to $34.666 an ounce in New York, the biggest increase since Sept. 13.
Platinum futures for January delivery jumped 0.7 percent to $1,651.10 an ounce on the New York Mercantile Exchange, a third straight gain.
Strikes at Anglo American Platinum Ltd. (AMS), the largest producer of the metal, may lead to job losses after at least 21,000 staff halted work without following required dispute resolution procedures, Chief Executive Officer Chris Griffith said yesterday. The company said in an e-mailed statement that it began disciplinary action today that may lead to dismissals.
A six-week walkout at Lonmin Plc (LMI)’s Marikana mine erupted into violence, with 46 killed, including 34 shot by police last month. The miners won wage gains of as much as 22 percent.
Palladium futures for December delivery gained 1.5 percent to $635.40 an ounce.
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