NEW YORK – Gold extended its biggest weekly advance in a month as uncertainty about global economic growth boosted the metal’s appeal as a haven asset. Gold jumped 1,1 percent on Thursday after Federal Reserve minutes indicated policy makers remained cautious about raising US interest rates. Fed officials last month debated the steady US economic expansion against heightened global risks and reached a broad agreement on a go-slow strategy of raising rates. Gold fell three of the previous four weeks and was unchanged last week as a pick up in wages and a still-robust pace of job creation represented a vote of confidence that the US will hold up against an anaemic global backdrop.
The probability of an increase in interest rates by December rose near 70 percent in the middle of March, but has since fallen to 51 percent as of Friday. “People are still very concerned about the economy, and that’s what people are buying gold for,” Miguel Perez-Santalla, a sales and marketing manager at Heraeus Metals in New York, said in a telephone interview.
“That all leads to the Fed not to raise rates, because they’re not convinced the economy can survive a rate hike.” Gold futures for June delivery gained 0,2 percent to $1 239,70 an ounce at 10:44 am on the Comex in New York, heading for the first weekly gain since March 4.
US policy makers are due to meet at the end of the month. Fed Chair Janet Yellen said on Thursday she continues to see some slack remaining in the US labour market even as the economy shows “tremendous progress” after the financial crisis. – Bloomberg.