XAUUSD near two weeks high; Stimulus Optimism

by on January 16, 2013 6:44 am GMT

Spot gold gained as much as 0.3 percent to $1,684.75 an ounce and traded at $1,682.45 at 12:48 p.m. in Singapore. The metal reached $1,685.25 yesterday, the costliest since Jan. 3, after Federal Reserve Chairman Ben S. Bernanke said the previous day that while the U.S. economy is responding to monetary stimulus there is still “quite a ways to go.”

Gold advanced for a third day toward a two-week high as expectations that global policy makers will need to stimulate growth boosted demand for a store of value. Platinum fell from the most expensive in three months.

Gold for February delivery fell 0.1 percent to $1,682.10 an ounce on the Comex in New York. The World Bank trimmed its growth forecasts as government spending cuts, joblessness and low business confidence dragged on developed economies.

Cash silver gained 0.2 percent to $31.44 an ounce. Assets in exchange-traded products backed by the metal stood at an all- time high of 19,064.83 metric tons yesterday.