Gold futures rose as the dollar’s drop boosted demand for the metal as an alternative asset. Platinum and palladium rebounded from four-week lows after South Africa’s main utility declared a power emergency.
The Bloomberg U.S. Dollar Index dropped to the lowest in almost two weeks on speculation that Federal Reserve officials will reiterate that economic growth isn’t yet sufficient to trim stimulus. Janet Yellen, nominated to lead the central bank, has said the the labor market must improve before policy makers can consider tapering.
“The dollar is helping gold,” Dean Popplewell, a currency analyst at Toronto-based Oanda Corp., said in a telephone interview. “The timing of the tapering will continue to be the guiding force.”
Gold futures for delivery in December advanced 0.2 percent to $1,274.40 an ounce at 11:19 a.m. on the Comex in New York. Through yesterday, the price tumbled 24 percent this year, heading for the first annual drop since 2000.