SINGAPORE, Feb 5 — Gold climbed for a second day after the People’s Bank of China joined central banks acting to counter slower growth, and policy makers in Europe tightened the terms of Greece’s bailout, boosting demand for a haven.
Bullion for immediate delivery rose as much as 0.4 per cent to US$1,274.18 an ounce, and traded at US$1,272.39 at 9:10am in Singapore, extending yesterday’s 0.7 per cent gain, according to Bloomberg generic pricing.
The metal rebounded from a two-day, 1.8 per cent drop even as the Bloomberg Dollar Spot Index rose.
Gold climbed 7.4 per cent this year, partly on concern the Federal Reserve may hold back from raising rates as the largest economy won’t be shielded from a slowdown overseas.
The PBOC said yesterday it’s lowering lenders’ reserve ratio, joining more than a dozen counterparts in easing policy this year.
Gold also rallied after two years of losses on concern that Greece may exit the euro area as the country that triggered the region’s sovereign-debt crisis in 2009 renegotiates its debt.
“Central banks appear to be in a monetary-easing race, which provides only a small support to gold because the dollar also strengthens,” Zhu Chunming, a Shenzhen, China-based analyst at Citic Futures Co, wrote in a note.
“Any sign of trouble in Greece will help prices but the market is likely to move cautiously before the upcoming US jobs report.”
Government data on Friday may show US employers continued to add workers in January.
The Institute for Supply Management said yesterday that its non-manufacturing index rose to 56.7 in January from a six-month low of 56.5 in December.
Gold for April delivery advanced 0.7 per cent to US$1,273.30 (RM4,537.405) an ounce on the Comex in New York, after climbing 0.3 per cent a day earlier.
Silver for immediate delivery rose 0.5 per cent to US$17.456 an ounce. Spot platinum gained 0.2 per cent to US$1,243.63 an ounce and palladium increased 0.3 per cent to US$794.75 an ounce. — Bloomberg
