BLBG:Gold Set To Advance On Speculation Bernanke To Hint At Stimulus
Gold, little changed, may gain on speculation Federal Reserve Chairman Ben S. Bernanke may hint at fresh stimulus measures to bolster the U.S. economy in a speech tomorrow and as investor holdings climbed to an all-time high.
Immediate-delivery gold rose as much as 0.2 percent to $1,660.30 an ounce and was at $1,658.40 at 2:55 p.m. in Singapore, poised for a third monthly gain. December-delivery bullion was little changed at $1,662.40 on the Comex in New York after dropping as much as 0.4 percent to $1,656.70.
Minutes of the Federal Reserve’s latest meeting showed many policy makers said additional stimulus would probably be needed soon unless the economy shows signs of a pickup. Bernanke may signal the bank’s readiness to make more bond purchases in a speech to central bankers tomorrow in Jackson Hole, Wyoming. At the event in 2010, he foreshadowed a second round of buying.
“We’re seeing a little volatility, but prices are generally supported on the expectation of some policy easing response,” said Natalie Rampono, an analyst at Australia & New Zealand Banking Group Ltd.
Gold has risen 2.7 percent this month and is set for the biggest gain since January. Prices reached a four-month high of $1,676.90 on Aug. 27 on speculation that the Fed will embark on a third round of debt purchases.
Exchange-traded product holdings expanded 0.1 percent to a record 2,460.46 metric tons yesterday, Bloomberg data show. That exceeds Italy’s 2,451.8 tons and ETPs constitute the third- largest hoard compared with national reserves, according to data compiled by Bloomberg and the International Monetary Fund.
Spot silver, poised for a second monthly advance, was little changed at $30.7425 an ounce after dropping as much as 0.5 percent to $30.5887. Palladium, also set for a second monthly increase, gained 0.3 percent to $634.40 an ounce.
Platinum climbed as much as 0.7 percent to $1,527.75 an ounce and was at $1,524.25. ETPs backed by the metal expanded 2.1 percent to 44.8195 tons yesterday, the biggest since September, data compiled by Bloomberg showed. Platinum is poised for a monthly advance.
To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
