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Singapore - Gold rose after Federal Reserve Governor Lael Brainard said that there’s no reason to rush to raise US interest rates, putting a further dent in expectations for an increase over the remainder of 2016.
The metal for immediate delivery gained as much as 0.3% to $1 332.15 an ounce and traded at $1 328.98 at 07:37, according to Bloomberg generic pricing. The rise followed a four-day, 1.6% retreat.
Gold investors are in thrall to comments from Fed officials in a bid to discern the trajectory of US monetary policy.
While Boston President Eric Rosengren said on Friday the economy could overheat if policy makers wait too long, Brainard said on Monday there’s no reason to rush. That cut the odds of a hike this month to 22% from 30% on Friday, futures prices indicate.
“Brainard stuck to her message on exercising caution and prudence,” Bryan Lum, a Singapore-based strategist with Phillip Futures Pte, said in an e-mail. “Interest rate expectations corrected accordingly” and helped set a price floor, which will likely remain supported until inflation numbers this Friday, he said.
The Labour Department is due to release US consumer price index data for August on September 16.
Holdings in bullion-backed exchange traded funds added 0.6 metric ton to 2 020.3 tons on Monday, data compiled by Bloomberg show. In China, bullion of 99.99% purity was little changed $1 333.25/oz on the Shanghai Gold Exchange.
On the Shanghai Futures Exchange, gold for December delivery was flat at 287.50 yuan a gram, while silver added 0.7% to 4 278 yuan a kilogram. Spot silver added 0.2%, while platinum and palladium dropped 0.2%.
