Gold advanced for the first time in three days as the smallest gain in U.S inflation in five months bolstered expectations that Federal Reserve policy makers meeting today will delay curbing stimulus measures.
Consumer prices increased 1.2 percent in the 12 months through September, the lowest since April, a government report showed today. U.S. central bankers are set to maintain $85 billion in monthly bond purchases until March, a Bloomberg News survey of economists on Oct. 17-18 showed. Bullion rose 70 percent from December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system.“The consumer-price report is reinforcing the idea that there’s no impending taper from the Fed,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “Gold’s getting a bit of a lift from that.”
Gold futures for delivery in December rose 0.8 percent to $1,356.80 an ounce at 9:45 a.m. on the Comex in New York. The metal lost 0.5 percent in the previous two days.
Holdings in exchange-traded products backed by gold increased yesterday for a second day to 1,881.8 metric tons, data compiled by Bloomberg show. Assets reached 1,881.4 tons on Oct. 25, the lowest in more than three years.
Gold has fallen 19 percent in 2013, while global equities advanced 18 percent, reaching the highest since 2008 today. BlackRock Inc. Chief Executive Officer Laurence D. Fink said yesterday that it’s imperative that the Fed begins trimming stimulus as the policy is contributing to “bubble-like markets.”
“Even if not today, tapering will come,” said Lv Jie, an analyst at Cinda Futures Co., a unit of one of four funds in China created to buy bad debt from banks. “That’s weighed on gold for most of this year, and we don’t see it changing.”
Silver futures for December delivery rose 2.4 percent to $23.03 an ounce in New York, heading for the biggest gain since Oct. 17.
Consumer prices increased 1.2 percent in the 12 months through September, the lowest since April, a government report showed today. U.S. central bankers are set to maintain $85 billion in monthly bond purchases until March, a Bloomberg News survey of economists on Oct. 17-18 showed. Bullion rose 70 percent from December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system.“The consumer-price report is reinforcing the idea that there’s no impending taper from the Fed,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “Gold’s getting a bit of a lift from that.”
Gold futures for delivery in December rose 0.8 percent to $1,356.80 an ounce at 9:45 a.m. on the Comex in New York. The metal lost 0.5 percent in the previous two days.
Holdings in exchange-traded products backed by gold increased yesterday for a second day to 1,881.8 metric tons, data compiled by Bloomberg show. Assets reached 1,881.4 tons on Oct. 25, the lowest in more than three years.
Gold has fallen 19 percent in 2013, while global equities advanced 18 percent, reaching the highest since 2008 today. BlackRock Inc. Chief Executive Officer Laurence D. Fink said yesterday that it’s imperative that the Fed begins trimming stimulus as the policy is contributing to “bubble-like markets.”
“Even if not today, tapering will come,” said Lv Jie, an analyst at Cinda Futures Co., a unit of one of four funds in China created to buy bad debt from banks. “That’s weighed on gold for most of this year, and we don’t see it changing.”
Silver futures for December delivery rose 2.4 percent to $23.03 an ounce in New York, heading for the biggest gain since Oct. 17.
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