Gold (COMEX:GCG14) rose, capping the longest run of weekly gains since August, after the president of the Federal Reserve Bank of Minneapolis said policy makers “need to do more” to stimulate the economy.
“We’re running the risk of being content with inflation running consistently below our target,” which is “inappropriate,” according to a Financial Times interview with Narayana Kocherlakota, who votes on monetary policy this year. The Fed decided in December to cut monthly bond purchases to $75 billion from $85 billion, contributing to gold’s first annual drop in 13 years. The central bank next meets Jan. 28-29.
“The dovish comments are definitely providing some tailwind,” Sterling Smith, a futures specialist at Citigroup Inc. in Chicago, said in a telephone interview. “The market is watching and looking for signals from every single piece of U.S. data and comments from Fed officials.”
Gold futures for February delivery added 0.9% to settle at $1,251.90 an ounce on the Comex in New York at 1:43 p.m., the biggest jump since Jan. 10. Bullion gained 0.4% this week, a fourth straight advance.
Silver futures for March delivery rose 1.2% to $20.304 an ounce, the biggest gain since Jan. 10. This week, the price advanced 0.4%, the fourth straight increase and the longest run since late August.
On the New York Mercantile exchange, palladium futures for March delivery gained 0.6 percent to $748.55 an ounce. Platinum futures for April delivery added 1.6 percent to $1,454.10 an ounce, the biggest gain since Jan. 2. Prices advanced for the fourth straight week, the longest rally since August.
Lonmin Plc and Impala Platinum Holdings Ltd., two of the world’s top three platinum producers, will start receiving strike notices within days after a South African union called for a stoppage over pay.