March 2, 2015
Gold Rises in Longest Run Since October on China Rates, U.S. GDP
(Bloomberg) -- Gold climbed for a fourth day, advancing to the highest level in almost two weeks, after China announced a second interest rate cut in three months and the U.S. reported a slower pace of economic expansion than estimated.
Bullion for immediate delivery rose as much as 0.8 percent to $1,223.29 an ounce, the highest since Feb. 17, before trading at $1,221.98 by 11:03 a.m. in Singapore, according to Bloomberg generic pricing. A fourth day of gains would be the longest run since Oct. 9. Prices climbed 0.9 percent last week for the first weekly increase in five.
The People’s Bank of China lowered the benchmark lending and deposit rates by a quarter percentage point on Saturday. A day later, a factory gauge for February signaled contraction for a second month, underscoring the need for looser policy. The U.S. grew at a 2.2 percent annualized rate, down from an estimate of 2.6 percent, the Commerce Department said on Friday.
“The slowdown in China remains a huge risk to global growth, supporting demand for gold,” Sun Yonggang, a macroeconomic strategist at Everbright Futures Co. in Shanghai, said by phone on Monday. “Gold received a boost from the latest U.S. data, which suggests that growth may not be as strong as perceived.”
The Bloomberg Dollar Spot Index added 0.2 percent to 1,174.63. The currency rose 0.4 percent against 10 major peers in February, the least since a cycle of appreciation that began in July, amid reports of sluggish inflation and the downward revision of growth. Federal Reserve Chair Janet Yellen signaled last week that an interest-rate increase isn’t imminent.
Bullion for April delivery advanced as much as 0.8 percent to $1,223 an ounce on the Comex in New York, the highest level for a most-active contract since Feb. 17, before trading at $1,222.60.
Silver for immediate delivery rose 1.1 percent to $16.7759 an ounce, extending last week’s 2.2 percent increase. Spot platinum added as much as 0.4 percent to $1,193.88 an ounce, the highest since Feb. 17. Palladium jumped 0.4 percent to $820.63 an ounce, the highest since Dec. 11.