Gold climbed to the highest in two weeks on speculation the European Central Bank may purchase assets including bullion to counter low inflation and as Russia indicated it added more metal to its reserves.
Russia’s central bank has bought about 150 metric tons of bullion this year, Governor Elvira Nabiullina told lawmakers in the State Duma today. That would imply the nation added about 35 tons since the end of September, the most recent available month of reserve data the International Monetary Fund compiles. Continued Russian buying would add some support to prices, said Ole Hansen, head of commodities strategy at Saxo Bank A/S.
ECB President Mario Draghi said yesterday that unconventional measures may include the purchase of a variety of assets to stimulate the economy. The central bank could theoretically buy sovereign debt, gold, exchange-traded funds, and even real estate to counter a longer period of low inflation, Executive Board member Yves Mersch said, while warning against rushing in.