Gold gained the most
in a week as equities fell amid mounting global economic concerns,
pushing back prospects for a U.S. interest-rate increase.
Stocks slid as
investors turned cautious after worse-than-expected economic data in the
U.S. and Germany this week. The global recovery is facing growing
risks, IMF Managing Director Christine Lagarde said Tuesday, a week
after Federal Reserve Chair Janet Yellen said caution was warranted in
tightening monetary policy. Lower rates are a boon for gold, which
becomes more competitive against interest-bearing assets.
Gold snapped two days
of losses as traders push back expectations for when the Fed will raise
U.S. interest rates. Odds that the central bank will make a move in
December are at 51 percent, down from 64 percent a week ago. Bullion
rose 17 percent last quarter after China’s economy grew at the slowest
pace in a generation and volatility in financial markets increased,
boosting demand for haven assets.
Gold futures for June
delivery gained 0.8 percent to settle at $1,229.60 an ounce at 1:43 p.m.
on the Comex in New York. The metal fell 1.3 percent in the previous
two sessions.
Source: Bloomberg
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