Bloomberg News

Gold Advances for Second Day as Commodities Jump on China Data

October 24, 2011

Oct. 24 (Bloomberg) -- Gold rose for a second straight session, tracking gains in others commodities, as renewed optimism for growth in China boosted prospects for raw-material demand.

The Standard & Poor’s GSCI Index of 24 raw materials climbed as much as 2.7 percent after reports showed China’s manufacturing may rise in October for the first time in four months. Gold also advanced on concern that U.S. monetary policy aimed at shoring up growth will spur inflation. Federal Reserve Vice Chairman Janet Yellen said on Oct. 21 that a third round of large-scale securities purchases may become warranted to boost the economy.

“Optimism about Chinese growth is pushing all commodities higher, including gold,” Fred Schoenstein, a trader at Heraeus Precious Metals Management in New York, said in a telephone interview. “Some people are also looking at it as a safe-haven investment.”

Gold futures for December delivery gained 1 percent to $1,652.30 an ounce at 2:21 p.m. on the Comex in New York. On Oct. 21, the precious metal jumped 1.4 percent.

Bullion is in the 11th year of a bull market, and futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies. The metal has gained 16 percent this year.

“Gold-investor interest has stabilized, and physical demand continues to emerge, albeit at softer levels,” Suki Cooper, an analyst at Barclays Capital in New York, wrote today in a report. “We continue to expect gold prices to be cushioned amid the seasonally strong period for demand, and this remains key before investment demand returns to the driver’s seat. We retain our positive view on gold, given the macro backdrop.”

Silver, Platinum

Silver futures for December delivery rose 1.4 percent to close at $31.644 an ounce on the Comex. The metal has climbed 5.2 percent this month.

On the New York Mercantile Exchange, platinum futures for January delivery advanced 2.2 percent to $1,542 an ounce, rising for the second straight session. Palladium futures for December delivery jumped 3.3 percent to $638.50 an ounce, heading for a first monthly gain in three.

--Editors: Steve Stroth, Patrick McKiernan

To contact the reporters on this story: Debarati Roy in New York at droy5@bloomberg.net; Nicholas Larkin in London at nlarkin1@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus