June 6, 2012 - 6:05AM
Gold futures rose in New York for the second time in three sessions on speculation that the world's policy makers will take measures to stimulate economic growth, reviving demand for the metal as an inflation hedge.
The finance ministers and central bank governors from the Group of Seven nations agreed today to coordinate their response to the euro area's sovereign-debt crisis. The Federal Reserve has held U.S. borrowing costs at a record low since 2008 and bought $2.3 trillion during two rounds of so-called quantitative easing through June 2011, helping gold surge to a record $1,923.70 an ounce in September.
"The gold market is expecting some kind of co-ordinated global effort," Sonny Tahiliani, the managing director of New York-based MacroMoves, said in a telephone interview.
Gold futures for August delivery rose 0.2 percent to settle at $1,616.90 at 2:10 p.m. on the Comex in New York.
Last month, prices slumped 6 percent as the dollar rallied 5.4 percent against a basket of six currencies, including the euro.
"Gold has been trying to re-assert itself as a safe haven," said Feng Liang, an analyst at GF Futures Co., a unit of China's second-largest listed brokerage. "However, the dollar's strength will continue to act as resistance to rising prices."
Silver futures for July delivery advanced 1.4 percent to $28.405 an ounce on the Comex.
On the New York Mercantile Exchange, platinum futures for July delivery added 0.9 percent to $1,440.50 an ounce, gaining for the third time in four sessions. Palladium futures for September delivery increased 1 percent to $619.80 an ounce.
BLOOMBERG
