Monday, 22 July 2013

Bloomberg: Gold Rallies Above $1,300 on Outlook for Stimulus, Inflation

Gold jumped to a one-month high from London to Shanghai and Tokyo as expectations that the U.S. Federal Reserve will sustain stimulus hurt the dollar, while higher oil prices may boost the outlook for inflation.

Spot gold climbed as much as 2.1 percent to $1,323.23 an ounce, the highest level since June 20, and traded at $1,320.63 at 2:04 p.m. in Singapore. Bullion priced in euros rose above 1,000 for the first time since June 20. Assets in the SPDR Gold Trust, the largest bullion-backed exchange-traded product, fell 0.7 percent last week, the least since the five days to June 14.

Gold rose 0.8 percent last week, capping the first back-to-back weekly gains since May, after Fed Chairman Ben S. Bernanke indicated that it’s too early to decide whether to begin scaling back bond purchases in September. The Bloomberg Dollar Index dropped for a second day, while crude in New York climbed for a fourth session after settling at a 16-month high on July 19.

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