Gold snapped a four-day decline, trimming its worst weekly performance in six, before data that could show employers in the U.S. didn’t hire enough workers to lower the jobless rate, boosting the chances of more stimulus. Spot gold rose 0.2 percent to $1,591.25 an ounce at 2:41 p.m. in Singapore, after dropping 0.3 percent to the lowest level since July 25. Holdings in exchange-traded products expanded for a third day yesterday, climbing to a two-week high of 2,397.222 metric tons, data compiled by Bloomberg showed. Bullion is 2 percent lower this week, the biggest such loss since the five days to June 22, after the Federal Reserve held off announcing further monetary easing and European Central Bank President Mario Draghi failed to make immediate efforts to stem the region’s debt crisis. December-delivery futures rose 0.2 percent to $1,594.30 an ounce on the Comex. “Gold has been driven by the macroeconomic environment and as long as data continue to be lackluster, the expectation for more stimulus measures will keep prices supported,� Xiang Nan, an analyst at CITICS Futures Co., a unit of China’s biggest listed brokerage, said by phone from Hangzhou. “While gold is viewed as a safe harbor, it is still a commodity and for the past few months, investors have chosen the safety of U.S. treasuries and the dollar over gold.� Cash gold almost doubled from December 2008 to June 2011 after the Fed bought $2.3 trillion of debt in two rounds of so- called quantitative easing. In June, the U.S. central bank expanded a program of replacing short-term bonds in its portfolio with longer-term debt. Payrolls Report Unemployment in the U.S., which has been stuck above 8 percent since February 2009, was probably at 8.2 percent for a third month, economists forecast before data today. The Fed “will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions,� it said after a two-day meeting this week. In Europe, the ECB kept its benchmark interest rate on hold yesterday, as Draghi indicated the central bank intends to join forces with governments to buy bonds in sufficient quantities to ease the region’s crisis, even as Germany’s Bundesbank has reservations about the plan. Cash gold reached a six-week high of $1,629.35 on July 27 after Draghi pledged to do whatever it takes to preserve the euro. Spot silver gained for the first time in four days, rising as much as 0.4 percent to $27.2425 an ounce. It was last at $27.2375 and is down 1.8 percent this week for the worst such performance in six weeks. Cash platinum was little changed at $1,389.75 an ounce and was set for a fifth weekly slide. Palladium was also little changed at $571.50 an ounce, heading for a weekly loss. 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

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