Gold Gains for Third Time in Four Days on Stimulus BetsDebarati Roy and Nicholas Larkin
Gold futures rose for the third time in four sessions on speculation that the Federal Reserve will delay scaling back the pace of monetary stimulus, increasing demand of the metal as a store of value.
Last week, gold gained 3.7 percent, the most in two months, on speculation that the Fed won’t start tapering until 2014 after the 16-day closure of the federal government damped the economy. The first cut in debt purchases will be in March, according to the median estimate of 40 economists in a Bloomberg survey. Tomorrow, the Labor Department will release September jobs data delayed by the shutdown.
“The market is convinced that there will be no tapering this year,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Investors will be closely watching tomorrow’s jobs data to gauge the nation’s economic conditions.”
Gold futures for December delivery rose 0.1 percent to settle at $1,315.80 an ounce at 1:37 p.m. on the Comex in New York. Trading was 55 percent below the average for the past 100 days for this time, data compiled by Bloomberg showed.
This year, gold has dropped 21 percent, heading for the first annual decline since 2000. Some investors lost faith in the metal amid a rally in U.S. equities to a record and low inflation.
Silver futures for December delivery rose 1.7 percent to $22.278 an ounce. Earlier, the price reached $22.335, the highest for a most-active contract since Oct. 9.
On the New York Mercantile Exchange, platinum futures for January delivery increased 0.1 percent to $1,438.60 an ounce. The price climbed for the fourth straight session, the longest rally since late April.
Palladium futures for December delivery climbed 1.3 percent to $750.25 an ounce. Earlier, the metal reached $752.35, the highest since Aug. 27.