Gold rose to the highest level in a month after a report on U.S. wages raised concern that the economy may not be strong enough for the Federal Reserve to start increasing interest rates, hurting the dollar for a second day.
Bullion for immediate delivery advanced as much as 0.3 percent to $1,226.95 an ounce, the highest price since Dec. 12, and traded at $1,226.94 at 9:20 a.m. in Singapore, according to Bloomberg generic pricing. The metal climbed 1.2 percent on Jan. 9 to cap the biggest weekly gain since June as assets in the SPDR Gold Trust, the world™s largest exchange-traded product backed by bullion, rose the most since July.
The Bloomberg Dollar Spot Index fell for a second day, extending losses from a record close on Jan. 8, after data on Jan. 9 showed average hourly earnings for all U.S. employees fell in December by the most since comparable records began in 2006. Gold last year posted the first back-to-back annual drop since 2000 on speculation the Fed will raise borrowing costs this year as the economy improves. Additional data on Jan. 9 showed that U.S. employers added 252,000 jobs last month.
Gold for February delivery gained as much as 0.9 percent to $1,226.90 an ounce on the Comex in New York, the highest since Dec. 12, and was at $1,226.80. Most-active prices climbed 2.5 percent last week.
Silver for immediate delivery rose 0.8 percent to $16.6295 an ounce, after posting the first weekly increase in four weeks. Spot platinum was at $1,233.75 an ounce from $1,233.31 on Jan. 9, and palladium lost 0.1 percent to $802.30 an ounce.
Source : Bloomberg