Gold rose to the highest level in a
week as China’s inflation cooled and before a report that may
show an increase in U.S. jobless claims, boosting optimism that
central banks may take steps to bolster the global economy.
Gold for immediate delivery gained as much as 0.4 percent
to $1,618.80 an ounce, the highest since July 31, and traded at
$1,615.89 at 1:39 p.m. in Singapore. December-delivery gold rose
as much as 0.3 percent to $1,620.30 on the Comex.
Consumer prices rose 1.8 percent from a year earlier, the
lowest rate since January 2010, while producer prices fell 2.9
percent, the fifth straight drop, said the National Bureau of
Statistics. That may encourage policy makers to introduce more
stimulus measures. Weekly U.S. jobless claims rose to 370,000
from 365,000, according to a Bloomberg News survey of economists
before the Labor Department issues the figure today.
“There is still QE thinking in the background of good prices and it won’t go away until we see the U.S. in full
recovery mode,” said David Lennox, a resource analyst at Fat
Prophets in Sydney, referring to quantitative easing. “That’s
certainly not happening at the moment.”
The Federal Reserve said Aug. 1 it will add stimulus if
necessary to boost growth and cut an unemployment rate that has
been 8 percent or higher for more than three years.
Holdings in exchange-traded products backed by gold gained
0.3 percent to 2,411.721 metric tons yesterday, the highest
since July 6, according to data compiled by Bloomberg.
Separate reports today showed Chinese retail sales slipped
and industrial production in the world’s second-largest economy
grew less 10 percent for a fourth month, a level not seen since
the 2009 financial crisis.
Spot silver gained as much as 0.6 percent to $28.205 an
ounce and was at $28.1925. Platinum for immediate delivery
climbed as much as 0.7 percent to $1,418.75 an ounce, the
highest since Aug. 3, and traded at $1,414.75. Palladium rose
0.3 percent to $588.75 an ounce.