Gold held the biggest one-day gain in three months on concern the market turmoil spurred by China’s devaluation may weaken currencies and delay the onset of higher U.S. interest rates, increasing demand.
Gold for immediate delivery was little changed at $1,124.50 an ounce at 7:52 a.m. in Singapore after rising 0.1 percent to $1,125.85, the highest since July 20, according to Bloomberg generic pricing. The metal rallied 1.4 percent on Wednesday, the most since May 13, capping a five-day rally.
Bullion is often used as an alternative store of value, and tends to rise when currencies slump. China’s decision on Tuesday to weaken its currency may boost the chances of competitive devaluations, reinvigorating gold’s allure a prices dropped to the lowest level since 2010 last month. The dollar dropped on Wednesday as traders pared bets that the U.S. Federal Reserve will start raising interest rates from next month.
Silver for immediate delivery traded at $15.55 an ounce from $15.546 on Wednesday, when prices capped five days of gains. Spot platinum was little changed at $1,000.35 an ounce after rising 1.4 percent on Wednesday, while palladium dropped 0.3 percent to $625.30 an ounce after a 4.4 percent surge.