Bloomberg News

Gold Futures Gain for Third Straight Day on Stimulus Speculation

March 06, 2013

Gold rose for the third straight day amid speculation that central banks will continue stimulus measures to boost growth.

European Central Bank policy makers meet tomorrow after President Mario Draghi signaled last month the bank has no intention of tightening monetary policy anytime soon.The Federal Reserve is scheduled to release its Beige Book report at 2 p.m. in Washington. Orders to U.S. factories fell in January by the most in five months, the Commerce Department said today.

“The stimulus story is not over as yet,” Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. “Also, physical demand has shown some signs of improvement.”

Gold futures for April delivery climbed 0.2 percent to $1,577.90 an ounce at 12:29 p.m. on the Comex in New York. The metal retreated 6 percent this year through yesterday.

Earlier, prices fell as much as 0.5 percent, mainly as Federal Reserve Bank of Philadelphia President Charles Plosser said in a speech today the central bank should slow the pace of its bond purchases.

Silver futures for May delivery increased 0.9 percent to $28.87 an ounce on the Comex, the fourth straight gain.

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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