Gold traded below a five-week high, headed for the first back-to-back weekly increase since July, amid speculation signs of a global slowdown led by Europe may delay the onset of higher U.S. borrowing costs. Palladium rose.
Bullion for immediate delivery was at $1,238.88 an ounce at 11:29 a.m. in Singapore from $1,238.81 yesterday, according to Bloomberg generic pricing. The metal rose to $1,249.75 on Oct. 15, the highest since Sept. 11, and is up 1.3 percent this week.
A rout in global equities and commodities including crude oil and base metals has boosted haven demand as the Bloomberg Dollar Spot Index fell for a second week. The Federal Reserve should consider delaying the end of its bond-purchase program to halt a decline in inflation expectations, said St. Louis Fed Bank President James Bullard.
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