Gold rose for the second time in three sessions amid speculation that the US may continue with stimulus measures, which increases the demand for gold as a store of value. Gold rose .3% to $1,665.10 an ounce while silver climbed 1.3% to $30.80.
By Debarati Roy & Nicholas Larkin
Jan 14, 2013 7:55 AM MT
Bloomberg
Gold rose for the second time in three sessions in New York amid speculation that the U.S. may continue with stimulus measures, increasing demand for the precious metal as a store of value.
Federal Reserve Bank of Chicago President Charles Evans said the U.S. should keep policy accommodative to support the economy. Gold slid to a four-month low on Jan. 4 after Fed minutes indicated policy makers may end $85 billion in monthly bond purchases sometime this year.
“Today’s comment is definitely supportive,” Scott Gardner, the chief investment officer at Verdmont Capital SA in Panama City, said in a telephone interview. “The Fed’s statement earlier this month took a lot of sheen out of gold.”
Gold futures for February delivery rose 0.3 percent to $1,665.10 an ounce at 9:54 a.m. on the Comex in New York. Prices advanced 0.7 percent last week, the first gain in seven.
Japanese Prime Minister Shinzo Abe said he wanted someone “who can push through bold monetary policy” as the next governor of the Bank of Japan. (8301) The nation unveiled plans Jan. 11 to spend 10.3 trillion yen ($115 billion) on stimulating its economy out of a recession.
Silver futures for March delivery climbed 1.3 percent to $30.805 an ounce in New York.
To contact the reporters on this story: Debarati Roy in New York at droy5@bloomberg.net; Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
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