SINGAPORE: Gold is poised to climb for a second day on increased speculation that central banks around the world will take additional steps to prop up their economies to fend off a global slowdown.
Spot gold was little changed at US$1,590.85 an ounce at 8:22 a.m. in Singapore, after climbing 0.2% earlier, and rising 1.1% on July 13. August-delivery bullion was little changed at US$1,591.15 an ounce on the Comex in New York.
“The market continues to live off expectations for a loosening of monetary policy around the world,” said Sun Yonggang, a macroeconomic strategist at Everbright Futures Co., a unit of China’s largest state-owned investment group.
The momentum for a recovery in China’s economic growth isn’t yet in place and “difficulties” may persist for a while, the Xinhua News Agency reported yesterday, citing Premier Wen Jiabao. Data on July 13 showed that the country’s economy had the weakest quarterly expansion in three years as the fiscal crisis in Europe, China’s largest export market, hurt growth.
In the U.S., Federal Reserve Chairman Ben S. Bernanke is set to testify before Congress this week and will address the outlook for growth. The dollar was little changed against a six- currency basket including the euro.
Spot silver gained for a fourth day, rising as much as 0.5% to US$27.465 an ounce, and was last at US$27.3675. An advance today would be the best run of gains since the period to Jan. 23, when the metal rallied for six sessions.
Cash platinum climbed for a second day, rising as much as 0.7% to US$1,440.50 an ounce, before trading at US$1,436. Palladium was little changed at US$584.50 an ounce, after swinging between gains and losses.(Bloomberg/aph)
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