BLBG:Gold Seen Rising On Prospects For Central-Bank Stimulus
Gold, trading near a five-month high, was seen rising in New York as economic reports fueling the case for more central-bank stimulus stoked demand.
Euro-area manufacturing shrank more than first estimated in August, a report showed yesterday. Figures today may show U.S. manufacturing teetered between growth and contraction in August, according to a survey of economists. Manufacturing in China contracted last month for the first time since November, an official gauge showed Sept. 1.
“Poor economic data has generally raised hopes for more broad-based quantitative easing,” William Adams, an analyst at FastMarkets.com in London, said in a report today.
Gold for December delivery added 0.3 percent to $1,692.10 an ounce by 7:15 a.m. on the Comex in New York, where floor trading was closed yesterday for the Labor Day holiday. Prices reached $1,699.60, the highest level since March 27. Immediate- delivery gold fell 0.1 percent to $1,689.98 an ounce in London.
Bullion at the morning “fixing,” used by some mining companies to sell output, was unchanged at $1,691.50 an ounce in London from yesterday afternoon.
Federal Reserve Chairman Ben S. Bernanke said Aug. 31 the U.S. central bank will provide additional stimulus as needed. The European Central Bank may reveal details of a plan to buy bonds of debt-saddled nations when officials meet on Sept. 6. The euro rose as much as 0.3 percent against the dollar before erasing the gain.
“The euro strength seems to be reflecting high expectations that the ECB will come up with some groundbreaking policy,” Adams said.
Assets in gold-backed exchange-traded products, which reached a record 2,460.5 metric tons on Aug. 29, were at 2,460 tons on Aug. 31, according to data tracked by Bloomberg.
Silver for December delivery rose 1.9 percent to $32.035 an ounce after reaching $32.375, the highest level since April 13.
Platinum for October delivery rose 1 percent to $1,552 an ounce after touching $1,561, the highest price since Aug. 23. Palladium for December delivery advanced 0.6 percent to $633.45 an ounce.
To contact the reporters on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
