Gold Advances on Bets Fed Will Keep Rates Low as Economy Slows

Gold futures rose the most in a week on speculation that the Federal Reserve will keep interest rates low to stimulate the U.S. economy, boosting the appeal of the precious metal as an alternative to the slumping dollar.

The greenback headed for the third straight weekly decline against a basket of major currencies as this week’s economic reports showed the U.S. recovery is waning. Employers in May added the fewest number of workers in eight months, and unemployment climbed to 9.1 percent. Before the jobs figures were released today, gold dropped as much as 0.5 percent.