Gold rose on speculation that the Fed may increase their stimulus measures in an attempt to bolster the economy after it was announced that more Americans than forecaster filed applications for unemployment benefits last week. Yesterday, Ben Bernanke said that the central bank will do more to fuel growth if necessary.
By Debarati Roy
Apr 26, 2012 6:35 AM MT
Bloomberg
Gold rose the most in two weeks on speculation that the Federal Reserve may increase stimulus measures to bolster the U.S. economy after more Americans than forecast filed applications for unemployment benefits last week.
Jobless claims fell by 1,000 to 388,000 in the week ended April 21, from a revised 389,000 a week earlier, which was the highest since early January, Labor Department figures showed today. The median forecast of 48 economists surveyed by Bloomberg News called for a drop to 375,000. Fed Chairman Ben S. Bernanke said yesterday that the central bank will do more to fuel growth if necessary.
“The job market is softening, and the Federal Reserve may be forced to look at some form of easing,” James Cordier, portfolio manager at OptionSellers.com in Tampa, Florida, said in a telephone interview. “Investors have started pricing that in.”
Gold futures for June delivery rose 0.7 percent to $1,653.80 an ounce at 9:33 a.m. on the Comex in New York. A close at that price would mark the biggest gain for a most- active contract since April 12. Before today, the precious metal gained 4.8 percent this year.
Silver futures for July delivery advanced 1.4 percent to $30.855 an ounce on the Comex, heading for the biggest gain since April 12.
To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
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