Bloomberg News

Gold Futures Advance as Global Stimulus Boosts Investor Demand

November 08, 2012

Gold climbed for the third time this week on signs that increasing global stimulus measures will boost investor demand for a hedge against inflation.

The European Central Bank stands ready to activate its bond-purchase program if governments fulfill necessary conditions, ECB President Mario Draghi said today. President Barack Obama, elected for a second term this week, faces a so- called fiscal cliff of $600 billion in tax increases and spending cuts to start in January unless Congress acts.

“I’m still bullish on gold, because we’re most likely going to have quantitative easing for a while,” Fred Schoenstein, a trader at Heraeus Precious Metals Management in New York, said in a telephone interview. “That’s on the minds of traders with Obama coming back in.”

Gold futures for December delivery rose 0.7 percent to settle at $1,726 an ounce at 1:38 p.m. on the Comex in New York. Prices have jumped 10 percent this year.

The Federal Reserve has pledged to keep buying $40 billion of mortgage debt a month in its third bid to reduce joblessness.

Silver futures for December delivery advanced 1.8 percent to $32.24 an ounce in New York.

On the New York Mercantile Exchange, platinum futures for January delivery increased 0.2 percent to $1,542.50 an ounce, while palladium futures for December delivery added 0.7 percent to $614.35 an ounce.

To contact the reporter on this story: Joe Richter in New York at

To contact the editor responsible for this story: Steve Stroth at

China's Killer Profits
blog comments powered by Disqus