BLBG:Gold Gains Alongside Commodities On Stimulus Hopes, China Demand
Gold advanced along with equities and other commodities on speculation that policy makers from the U.S. to China will take steps to boost their economies after data signaled slowing growth and on signs of robust Chinese demand.
Immediate-delivery gold rose as much as 0.3 percent to $1,623.68 an ounce and was at $1,622.78 at 9:56 a.m. in Singapore. Mainland China, set to overtake India as the world’s largest bullion market, imported 103.6 metric tons from Hong Kong in April, up 65 percent from March, according to data from Hong Kong’s statistics department yesterday.
Reports in the past week showed a non-manufacturing purchasing managers’ index and an official manufacturing gauge dropped in May from the previous month, boosting the case for more stimulus. In the U.S., orders to factories unexpectedly declined for a second month in April, while employers added fewer jobs than expected in May. Asian stocks rose after a four- day drop and copper gained for the first time in five days.
“Gold prices may be supported by China’s growing appetite for bullion,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “The ability of China to sustain gold imports is impressive, considering that the economy is showing signs that growth is cooling. More accommodative monetary policies may have positive implications for gold prices.”
August-delivery bullion gained as much as 0.7 percent to $1,624.80 an ounce on the Comex in New York and was last at $1,623.30. The dollar fell for a third day against a six- currency basket including the euro before finance ministers and central bank governors from the Group of Seven countries hold a call today to discuss Europe’s debt crisis.
Spot silver rose as much as 0.8 percent to $28.4738 an ounce, before trading at $28.4175. Cash platinum climbed as much as 1.2 percent to $1,445.75 an ounce, and was last at $1,444.25. Palladium added as much as 0.9 percent to $617.75 an ounce, and traded last at that level.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
