NEW YORK, Oct 7 — Gold held near the highest level in more than a week on speculation that the Federal Reserve will refrain from increasing US interest rates this year on further signs of slowing global economic growth.

Bullion for immediate delivery was at US$1,148.25 (RM4,950) an ounce at 9:23am in Singapore from US$1,147.24 yesterday, when it rose 1 per cent, according to Bloomberg generic pricing.

Prices gained to US$1,151.30 in intraday trading on October 6, the highest since September 25.

Gold has rebounded from a five-year low in July as turmoil in emerging markets, slower growth in China and patchy US economic data have hurt the outlook for tighter monetary policy from the Federal Reserve. The International Monetary Fund yesterday cut its outlook for global growth this year, stoking the case for the Fed to hold off on a move. Higher rates curb the appeal of gold because it doesn’t pay interest.

“We’re definitely getting the feeling that the market is starting to price in a lower probability of the Fed raising rates over the next few months,” Daniel Hynes,senior commodity strategist at Australia & New Zealand Banking Group Ltd., said by telephone from Sydney.

“That’s clearly better for the gold market, with the specter of lower yields benefiting the precious metal.”

The US trade deficit widened in August by the most in five months as a strong dollar and weakness in economies such as China impeded sales prospects for American companies, according to data yesterday.

Goldman Sachs Group Inc. this week raised the possibility that the Fed may not raise rates until well into 2016. — Bloomberg