Gold climbed to a two-month high in New York, heading for the longest weekly rally since September 2012, as declines in European equities spurred demand for the metal as an alternative investment.
European stocks declined as much as 1.7 percent. Gold futures jumped 1.9 percent yesterday, the most since Dec. 10, as data showed the number of Americans continuing to receive jobless benefits unexpectedly increased. Bullion advanced 1.3 percent this week for a fifth weekly increase.
Fed policy makers meet Jan. 28-29, after deciding in December to cut monthly bond buying as the economy improved, and will end the program this year, according to the median forecasts of economists in a Bloomberg survey. Gold rose as much as 7.8 percent from a six-month low set Dec. 31 on signs of increased physical demand, particularly in China.