Bloomberg News

Gold Advances as Commodities, Equities Rally

March 09, 2012

Gold rose for a third straight session, tracking gains in equities and commodities, after a report showed U.S. payrolls gained more than forecast, boosting the outlook for economic growth and raw-material demand.

U.S. employers boosted payrolls by 227,000 last month, topping economists’ median projection of 210,000, the Labor Department said today. The Standard & Poor’s GSCI Spot Index of 24 raw materials climbed as much as 1 percent. The S&P 500 Index of equities climbed as much as 0.6 percent. Automatic purchases by computer programs may have contributed to the rally after prices rose above $1,700 an ounce, said Adam Klopfenstein, a market strategist at Archer Financial Services Inc.

“We saw the optimism in the equity markets finally have a rub-on effect on commodities, including gold,” Klopfenstein said in a telephone interview from Chicago.

Gold futures for April delivery gained 0.8 percent to settle at $1,711.50 at 1:55 p.m. on the Comex in New York. Prices rose 0.1 percent this week, the third gain in four.

Silver futures for May delivery rose 1.1 percent to $34.212 an ounce on the Comex. Still, the metal declined 0.9 percent this week, the second straight loss.

On the New York Mercantile Exchange, palladium futures for June delivery advanced 1.5 percent to $709.95 an ounce. Platinum futures for April delivery climbed 1.7 percent to $1,684.90 an ounce.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

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


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