Gold futures rose to a four-week high on speculation that the Federal Reserve will keep U.S. interest rates low for a considerable time to bolster the economy.
Average hourly earnings for all U.S. employees fell 0.2 percent in December from a month earlier, the most since comparable records began in 2006, government data showed Jan. 9. Gold priced in euros rose to the highest since September 2013 as Greece prepared for a Jan. 25 election amid speculation that the country will exit the currency bloc. Japan plans a record budget to support an economy that fell into recession.
“There are some people who believe the Fed won’t raise rates at all in 2015,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “The Fed is put in a corner because they need to raise rates because of strength in the U.S. economy, but Europe and Japan continue to struggle.”
Gold futures for February delivery rose 0.9 percent to $1,226.60 an ounce at 10:26 a.m. on the Comex in New York. Earlier, the metal reached $1,231.30, the highest for a most-active contract since Dec. 11.
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