BLBG: Gold Rises to 1-Month High on Slower Rate Gain Outlook
Gold rose to a one-month high on speculation that the Federal Reserve will go slow in raising interest rates to safeguard the economic expansion. Silver and platinum advanced.
Data last week showed average hourly earnings for all U.S. employees fell in December by the most since comparable records began in 2006. Bullion priced in euros rose to the highest since September 2013 as Greece prepares for a Jan. 25 election that is stoking demand for safer investments.
The U.S. wages data “puts a question mark against how quickly the Fed will raise rates,” David Govett, head of precious metals at broker Marex Spectron in London, wrote in a note. “I’m always reluctant to get overly friendly to the market when it is near its highs, but its resilience is impressive so far this year.”
Gold for February delivery gained 0.5 percent to $1,222 an ounce on the Comex in New York. Earlier, the metal reached $1,231.30, the highest since Dec. 11.
The metal trades at 1,035 euros. Prime Minister Antonis Samaras has said an exit from the currency bloc could result should the opposition Syriza party win.
Bullion for immediate delivery was little changed at $1,223.67, according to Bloomberg generic pricing.
To contact the reporters on this story: Laura Clarke in London at lclarke24@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net Randall Hackley
