Bloomberg News

Gold Advances on Japan, U.S. Outlook for More Stimulus

March 04, 2013

Gold futures climbed for the first time in four sessions on speculation that central banks will continue stimulus measures to spur economic growth.

Haruhiko Kuroda, the nominee to be Bank of Japan (8301) governor, said he would do whatever is needed to end 15 years of deflation. Federal Reserve Vice Chairman Janet Yellen said the U.S. central bank should press on with $85 billion in monthly bond buying. Gold advanced 7 percent last year as nations from the U.S. to China pledged more stimulus to bolster economic growth.

“It seems as if accommodative monetary policies are here to stay for some time,” Lance Roberts, the chief executive officer of Streettalk Advisors LLC in Houston, said in a telephone interview.

Gold futures for April delivery rose 10 cents to settle at $1,572.40 an ounce at 1:50 p.m. on the Comex in New York.

The metal pared gains of as much as 0.8 percent after Italy’s inconclusive election spurred mounting debt concerns in Europe. The euro fell for the third straight session against the dollar.

“The weaker euro is pushing gold lower,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview.

The metal, down 2.7 percent in the previous three sessions, has dropped 6.2 percent this year.

Physical demand picked up “markedly” below $1,600, Standard Bank Plc’s SBG Securities (Pty) Ltd. said today.

Silver futures for May delivery climbed less than 0.1 percent to $28.496 an ounce on the Comex. On March 1, the price touched $27.925, the lowest for a most-active contract since Aug. 16. The metal has declined 5.7 percent this year.

On the New York Mercantile Exchange, platinum futures for April delivery fell 0.5 percent to $1,566.20 an ounce. The price dropped for the fifth straight session, the longest slump since Dec. 24.

Palladium futures for June delivery declined 0.8 percent to $714.45 an ounce.

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


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus