Gold rose to a one-month high on speculation that the Federal Reserve will go slow in raising interest rates, weakening the dollar and boosting demand for the precious metal.
Bullion for immediate delivery advanced as much as 0.4 percent to $1,228.33 an ounce, the highest price since Dec. 11, and traded at $1,225.57 at 12:24 p.m. in Singapore, according to Bloomberg generic pricing. The metal climbed 1.2 percent on Jan. 9 to cap the biggest weekly gain since June as assets in the SPDR Gold Trust, the world’s largest exchange-traded product backed by bullion, rose the most since July.
The Bloomberg Dollar Spot Index fell for a second day, extending losses from a record close on Jan. 8, after data on Jan. 9 showed average hourly earnings for all U.S. employees fell in December by the most since comparable records began in 2006. Gold last year posted the first back-to-back annual drop since 2000 on speculation the Fed will raise borrowing costs this year as the economy improves. Data on Jan. 9 showed that U.S. employers added 252,000 jobs last month.
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