BLBG:Gold Seen Rising After Reaching 10-Month High on Stimulus
Gold was seen extending a weekly gain after climbing to the highest price in more than 10 months on speculation central-bank stimulus will spur demand for the metal as a protection of wealth.
European Central Bank President Mario Draghi said yesterday the bank is ready start buying the bonds of indebted euro nations after policy makers held the benchmark interest rate at a record low. Gold rallied last month as the Federal Reserve announced a third round of quantitative easing and other central banks pledged more action. Economists expect a report today may show U.S. payrolls rose in September.
“All the markets seem quiet ahead of the U.S. non-farm employment report,” William Adams, an analyst at FastMarkets Ltd. in London, wrote today in a report. “We remain more bullish for bullion as we see all the quantitative easing as debasing the value of money.”
Bullion for immediate delivery was little changed at $1,789.53 an ounce by 11:16 a.m. in London. Prices reached $1,796.10, the highest since Nov. 14, and are up 1 percent this week. December-delivery futures were 0.3 percent lower at $1,791.20 on the Comex in New York.
Gold at the morning “fixing,” used by some mining companies to sell output, declined to $1,790 in London from $1,791.75 yesterday afternoon.
Holdings in gold-backed exchange-traded products rose 11.1 metric tons to a record 2,565.5 tons yesterday, data compiled by Bloomberg show. Bullion priced in euros, Swiss francs and South African rand set all-time highs this week, data compiled by Bloomberg shows.
A U.S. Labor Department report today may show the world’s biggest economy created 115,000 jobs last month, up from 96,000 in the prior month, while the unemployment rate rose to 8.2 percent from 8.1 percent, economists’ estimates show.
Silver for immediate delivery fell 0.3 percent to $34.8937 an ounce. Platinum reached $1,730.50 an ounce, the highest since Feb. 29, and was last down 1 percent at $1,702.49. Palladium declined 0.7 percent to $668.45 an ounce.
To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Chanyaporn Chanjaroen in Singapore at cchanjaroen@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
