Feb. 12 (Bloomberg) -- Gold traded little changed near a three-month high as investors weighed the outlook for U.S. stimulus and speculation the metal’s advance will deter physical purchases. Silver rose in the longest run of gains since 2011.
Global stocks climbed to the highest level in more than two weeks. Federal Reserve Chairman Janet Yellen said yesterday that while the recovery in the U.S. labor market is “far from complete,” stimulus would be cut in “measured steps.” Bullion rose 70 percent from December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system.
Gold, which slid the most since 1981 last year as some investors lost faith in the metal as a store of value, rebounded 7.3 percent this year amid a sell-off in emerging-market currencies and rising physical demand, even as the Fed continued cutting monthly bond buying. Bullion settled above its 100-day moving average the previous two days. Volumes for Shanghai’s benchmark spot gold contract fell for second day after reaching a nine-month high on Feb. 10 after a weeklong holiday ended.
“Yellen’s comments did not contain much new information for gold,” UBS AG said today in a report. “A move north should gain momentum if gold continues to take out technical levels up ahead. Any attempt at the $1,300 psychological mark is likely to meet resistance and attract those who have been waiting for more attractive levels to close out longs or initiate shorts,” they said, referring to bets on higher and lower prices.
Bullion for April delivery was little changed at $1,289.50 an ounce by 8:08 a.m. on the Comex in New York. It reached $1,294.40 yesterday, the highest since Nov. 8, and a sixth day of gains would be the longest since June 2012. Futures trading volume was 16 percent below the average for the past 100 days for this time of day, data compiled by Bloomberg showed. Gold for immediate delivery fell 0.1 percent to $1,289.57.
The Fed said in January it will cut monthly bond purchases by $10 billion to $65 billion. Yellen repeated yesterday the central bank’s statement that asset purchases aren’t on a “pre- set course.” The Bloomberg Dollar Spot Index, a measure against 10 major currencies, was little changed after reaching a four- week low today.
Global stocks climbed as much as 0.4 percent earlier today after Chinese exports jumped 10.6 percent in January from a year earlier, eclipsing an estimate for a 0.1 percent gain, while imports accelerated 10 percent and the trade surplus widened.
Holdings in gold-backed exchange-traded products rose for a second day yesterday, increasing 0.4 metric ton to 1,738.3 tons, data compiled by Bloomberg show. Assets reached a four-year low of 1,736 tons last month.
“Physical buyers are very sensitive to price changes so it’s no surprise if demand slows,” said Lv Jie, an analyst at Cinda Futures Co., a unit of one of four funds in China created to buy bad debt from banks. “ETF flows appear to be stabilizing.”
Silver for delivery in March rose 0.3 percent to $20.215 an ounce, and an eighth successive daily advance would be the longest streak since April 2011. Palladium for delivery in the same month gained 0.7 percent to $721.65 an ounce. Platinum for April delivery increased 1 percent to $1,401.30 an ounce.
Talks to end a strike over pay that has crippled production at the world’s largest platinum mines in South Africa have been delayed to Feb. 13 after the companies requested more time.