Gold posted the first weekly gain since early March as global economic-growth concerns boosted the metal’s appeal as a haven asset.
Gold jumped 1.1 percent on Thursday after Federal Reserve minutes indicated policy makers remained cautious about raising U.S. interest rates. Fed officials last monthdebated the steady American economic expansion against heightened global risks and reached a broad agreement on a go-slow strategy of raising rates.
Gold fell three of the previous four weeks and was unchanged last week as a pickup in wages and a robust pace of job creation represented a vote of confidence that the U.S. will hold up against an anemic global backdrop. The probability of an increase in interest rates by December rose near 70 percent in the middle of March, but has since fallen to 50 percent as of Friday.
“People are still very concerned about the economy, and that’s what people are buying gold for,” Miguel Perez-Santalla, a sales and marketing manager at Heraeus Metals in New York, said in a telephone interview. “That all leads to the Fed not to raise rates, because they’re not convinced the economy can survive a rate hike.”
Gold futures for June delivery gained 0.5 percent to settle at $1,243.80 an ounce at 1:46 p.m. on the Comex in New York, the first weekly gain since March 4.
U.S. policy makers are due to meet at the end of the month. Fed Chair Janet Yellen said on Thursday she continues to see some slack remaining in the U.S. labor market even as the economy shows “tremendous progress” after the financial crisis.
In ETFs and other metals:
• Holdings in exchange-traded funds backed by gold climbed 2.08 metric tons to 1,764.2 tons on Thursday, according to data compiled by Bloomberg.
• Silver futures for May delivery gained 1.5 percent to $15.384 an ounce on the Comex.
• On the New York Mercantile Exchange, platinum and palladium gained.
Source: Bloomberg
