Gold rose to a one-month high on speculation that the Federal Reserve will go slow in raising interest rates, weakening the dollar and boosting demand for the precious metal. Silver and platinum advanced.
Bullion for immediate delivery advanced as much as 0.7 percent to $1,231.29 an ounce, the highest price since Dec. 11, and traded at $1,227.91 at 3:07 p.m. in Singapore, according to Bloomberg generic pricing. The metal climbed 1.2 percent on Jan. 9 to cap the biggest weekly gain since June as assets in the SPDR Gold Trust, the world’s largest exchange-traded product backed by bullion, rose the most since July.
The Bloomberg Dollar Spot Index fell for a second day, extending losses from a record close on Jan. 8, after data on Jan. 9 showed average hourly earnings for all U.S. employees fell in December by the most since comparable records began in 2006. Gold last year posted the first back-to-back annual drop since 2000 on speculation the Fed will raise borrowing costs this year as the economy improves. Data on Jan. 9 showed that U.S. employers added 252,000 jobs last month.
“The U.S. wages data overshadowed growth in jobs,” Huang Wei, an analyst at Huatai Great Wall Futures Co., wrote in a note. “It supports the possibility that the Federal Reserve may go slow on raising interest rates.”
Gold priced in euros rose to the highest level since September 2013 as Greece prepares for a Jan. 25 election that Prime Minister Antonis Samaras has said may lead to an exit from the currency bloc should the opposition Syriza party win. Political uncertainty in the country that triggered the region’s sovereign-debt crisis in 2009 comes at a time when the European Central Bank is trying to stave off deflation and revive growth.
Risk Aversion
“Gold looks to be supported this week by risk aversion in Europe brought about by Greece, as well as physical demand in Asia before the Lunar New Year,” Huang wrote. The Lunar New Year begins Feb. 19.
Gold for February delivery gained as much as 1.3 percent to $1,231.30 an ounce on the Comex in New York, the highest since Dec. 11. Most-active prices climbed 2.5 percent last week.
Silver for immediate delivery rose 0.7 percent to $16.6161 an ounce, after posting the first weekly increase in four. Platinum added as much as 0.3 percent to $1,237.19 an ounce, the highest price since Dec. 12, and traded at $1,235.63. Palladium was little changed at $803.25 an ounce.
