Gold gained before the release of reports today expected to show that the U.S. job market weakened further, driving equities lower and boosting demand for the precious metal as haven. Immediate-delivery gold advanced 0.5 percent to $1,836.07 an ounce at 3:02 p.m. Singapore time, after climbing 12 percent in August for its best monthly performance since November 2009. The metal reached a record $1,913.50 on Aug. 23. December- delivery bullion climbed 0.5 percent to $1,838.10 an ounce. U.S. employers added 68,000 jobs last month after an 117,000 increase in July, according to the median estimate of economists in a Bloomberg News survey before the Labor Department data today. Asian stocks fell today, with the MSCI Asia Pacific Index declining for the first time in seven days. “Employment is going to be a key issue for the U.S. for some time,” Zhang Jingjing, an analyst at Nanhua Futures Co., said by phone from Beijing today. “And until there’s some improvement in the job market, QE3 remains a real possibility and continues to be supportive of gold,” she said referring to so-called quantitative easing. The unemployment rate held at 9.1 percent, separate data may show today, increasing pressure on the Federal Reserve to consider further asset purchases to stimulate growth. The Office of Management and Budget said yesterday in an update of its economic forecasts through August that the jobless rate will average 9.1 percent in 2011 and 9 percent next year. Spot silver rose 0.2 percent to $41.66 an ounce, while futures in New York gained 0.4 percent to $41.705. Platinum, Palladium Cash platinum and palladium were little changed at $1,845.75 an ounce and $783.25 an ounce respectively. HSBC securities USA Inc. raised its 2012 and 2013 price targets for platinum and palladium as increased automotive and industrial demand is expected to outpace mine supply. The firm expects platinum to average $1,875 an ounce in 2012, up from a previous estimate of $1,750 an ounce. It increased its 2013 platinum target to $1,825 an ounce from $1,650 an ounce, New York-based analyst James Steel wrote in a note dated yesterday. The estimates for palladium was raised to $810 an ounce in 2012 and $825 an ounce in 2013, from $750 an ounce and $725 an ounce respectively. “We expect the supply/demand balance for both metals to move from modest surpluses into deficits,” Steel wrote. HSBC also cut its forecasts for both metals this year as the earthquake and tsunami in Japan curbed auto production in the country. It expects platinum to average $1,825 an ounce and palladium $785 an ounce this year. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

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