Gold Seen Gaining in New York on Central Bank Stimulus
Gold futures advanced for the second time in three days on speculation that moves by the world’s central banks to bolster economic growth will spur demand for the metal as a hedge against inflation.
Bullion advanced 5.1 percent last month as the Federal Reserve announced a third round of stimulus as the jobless rate held above 8 percent for a 43rd month in August. The European Central Bank also pledged to buy more debt in September, and the Bank of Japan (8301) added to an asset-purchase fund. The U.S. Labor Department will release the latest employment figures on Oct. 5.
“The quantitative easing announcements continue to support the market,” Sterling Smith, a futures specialist at Citigroup Inc.’s institutional client group in Chicago, said in a telephone interview. “The market will be closely watching the payroll numbers as that will tell us how the economy is doing.”
Gold futures for December delivery rose 0.2 percent to settle at $1,779.80 an ounce at 1:56 p.m. on the Comex in New York. Futures reached $1,794.40 on Oct. 1, the highest since Nov. 14.
The U.S. jobless rate probably rose to 8.2 percent last month from 8.1 percent in August, according to the median forecast of economists surveyed by Bloomberg News before the government report.
Silver futures for December delivery gained 0.1 percent to $34.69 an ounce in New York.
Platinum futures for January delivery climbed 0.4 percent to $1,694.10 an ounce on the New York Mercantile Exchange, the seventh-straight increase.
Palladium futures for December delivery advanced 0.6 percent to $657.90 an ounce on the Nymex.
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