Gold Near Two-Week High as Stimulus Seen Sustained; Silver Gains
Gold traded near a two-week high as expectations that policy makers around the world will continue to support their economies increased demand for a store of value. Silver climbed as investors boosted holdings to a record.
Spot gold rose as much as 0.2 percent to $1,690.10 an ounce, and was at $1,686.94 at 9:49 a.m. in Singapore. The metal reached $1,694.81 yesterday, the most expensive since Dec. 18, rallying with stocks, copper and oil after U.S. lawmakers passed a bill averting automatic spending cuts and tax rises, heading off the so-called fiscal cliff that had threatened the recovery.
Gold traded near a two-week high as expectations that policy makers around the world will continue to support economies increased demand. Photographer: Chris Ratcliffe/BloombergThe metal ended 7.1 percent higher in 2012, rising for a 12th year, as central banks from the U.S. to China took steps to stimulate their economies. Bank of Japan Deputy GovernorKiyohiko Nishimura speaks tomorrow amid speculation of more asset purchases to end deflation in the third-largest economy.
“With traditional liquidity injections by central banks buoying gold prices since 2008, the prevention of the fiscal cliff benefited the precious-metal space,” said Barnabas Gan, an economist at Oversea-Chinese Banking Corp. “In the coming year, we continue to expect a sustained bull run.”
Gold for February delivery was little changed at $1,687.90 an ounce on the Comex in New York, after yesterday climbing to $1,695.40, also the highest price since Dec. 18. Gold may reach $1,900 as “central bankers everywhere continue to debase their currencies and the financial markets prove treacherous,” Byron Wien, chairman of Blackstone Group LP’s advisory services unit, said in his annual “10 Surprises” list published since 1986.
Cash silver gained 0.2 percent to $31.0925 an ounce after reaching $31.495 yesterday, the highest since Dec. 19. Assets in exchange-traded products backed by the metal stood at an all- time high of 18,956.034 metric tons on Jan. 2.
Spot platinum rose 0.3 percent to $1,570.25 an ounce, while palladium was little changed at $707.25 an ounce after climbing to the highest level since March yesterday.
Spot gold rose as much as 0.2 percent to $1,690.10 an ounce, and was at $1,686.94 at 9:49 a.m. in Singapore. The metal reached $1,694.81 yesterday, the most expensive since Dec. 18, rallying with stocks, copper and oil after U.S. lawmakers passed a bill averting automatic spending cuts and tax rises, heading off the so-called fiscal cliff that had threatened the recovery.
“With traditional liquidity injections by central banks buoying gold prices since 2008, the prevention of the fiscal cliff benefited the precious-metal space,” said Barnabas Gan, an economist at Oversea-Chinese Banking Corp. “In the coming year, we continue to expect a sustained bull run.”
Gold for February delivery was little changed at $1,687.90 an ounce on the Comex in New York, after yesterday climbing to $1,695.40, also the highest price since Dec. 18. Gold may reach $1,900 as “central bankers everywhere continue to debase their currencies and the financial markets prove treacherous,” Byron Wien, chairman of Blackstone Group LP’s advisory services unit, said in his annual “10 Surprises” list published since 1986.
Cash silver gained 0.2 percent to $31.0925 an ounce after reaching $31.495 yesterday, the highest since Dec. 19. Assets in exchange-traded products backed by the metal stood at an all- time high of 18,956.034 metric tons on Jan. 2.
Spot platinum rose 0.3 percent to $1,570.25 an ounce, while palladium was little changed at $707.25 an ounce after climbing to the highest level since March yesterday.
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