Gold Gains to One-Week High as Economy Woes Boost Stimulus BetsPhoebe Sedgman
Gold rose to the highest price in almost a week after the U.S. added the fewest workers in nine months, increasing optimism the Federal Reserve will maintain record monetary policy stimulus.
Gold for immediate delivery was little changed at $1,579.05 an ounce at 7:39 a.m. in Singapore after earlier touching $1,583.20, the highest since April 2. Bullion for June delivery gained 0.2 percent to $1,578.50 an ounce on the Comex.
U.S. payrolls grew by 88,000, less than the most-pessimistic forecast in a Bloomberg survey, Labor Department data showed April 5. Last week, the Bank of Japan said it will start unprecedented stimulus and European Central Bank President Mario Draghi said the institution is prepared to cut interest rates if the economy deteriorates further. Chinese President Xi Jinping said yesterday that the global economy has entered a period of “profound readjustment” and recovery remains elusive.
“Economic circumstances in Europe and the U.S. are set to deteriorate and gold will be the biggest beneficiary,” Gavin Wendt, a director of Mine Life Pty in Sydney, said in a report dated yesterday.
The Federal Reserve last month left unchanged plans to hold its target interest rate near zero percent as long as U.S. unemployment remains above 6.5 percent. The central bank also said it will continue its $85 billion in monthly asset purchases.
Spot silver gained as much as 0.4 percent to $27.445 an ounce and was little changed at $27.3613. Platinum was little changed at $1,538.50 an ounce, while palladium rose 0.3 percent to $730.55 an ounce.