![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Wednesday, April 15, 2009 9:59:31 AM
By Glenys Sim
April 15 (Bloomberg) -- Gold gained as the rally in global stocks halted and expectations that government spending will increase inflationary pressures boosted demand for the precious metal as a store of value.
Equities retreated after U.S. retail sales decreased 1.1 percent last month, while prices paid to U.S. producers decreased in March after two months of gains. In the past month, gold has dropped 3.3 percent and the benchmark MSCI Asia Pacific Index, which fell for the first time in five days today, climbed 17 percent.
“Despite the weight of deflationary data in recent weeks, concerns that quantitative easing and rising fiscal deficits will stoke inflationary pressures remain an important source of support for gold,” James Steel, an analyst at HSBC Securities, wrote in an e-mailed note.
Gold for immediate delivery gained 0.2 percent to $892.08 an ounce at 2:51 p.m. Singapore time. The metal fell yesterday after Federal Reserve Chairman Ben S. Bernanke said there are signs that the “sharp decline” in the economy may be easing, and President Barack Obama said the stimulus package is beginning to “generate economic progress.”
Investment in the SPDR Gold Trust, the biggest exchange- traded fund back by bullion, stood unchanged for a second day at 1,127.68 metric tons yesterday.
Governments are spending trillions of dollars to spur growth in the U.S., Europe, Japan and China. Japan has pledged 15.4 trillion yen ($153 billion), while China has put in place a 4 trillion yuan ($585 billion) stimulus plan.
“Investors’ perception of future inflation levels will continue to influence gold prices,” said Steel.
Among other precious metals for immediate delivery, silver was little changed at $12.7675 an ounce, platinum gained 1 percent to $1,222 an ounce, and palladium climbed 1.4 percent to $236 an ounce at 2:51 p.m. in Singapore.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
Last Updated: April 15, 2009 03:16 EDT
Glidelogic Corp. Announces Revolutionary AI-Generated Content Copyright Protection Solution • GDLG • Jul 26, 2024 12:30 PM
Southern Silver Files NI43-101 Technical Report for its Updated Preliminary Economic Assessment for the Cerro Las Minitas Project • SSV • Jul 25, 2024 8:00 AM
Greenlite Ventures Completes Agreement with No Limit Technology • GRNL • Jul 19, 2024 10:00 AM
VAYK Expects Revenue from First Airbnb Property Starting from August • VAYK • Jul 18, 2024 9:00 AM
North Bay Resources Acquires Mt. Vernon Gold Mine, Sierra County, California, with Assays up to 4.8 oz. Au per Ton • NBRI • Jul 18, 2024 9:00 AM
Nightfood Holdings Signs Letter of Intent for All-Stock Acquisition of CarryOutSupplies.com • NGTF • Jul 17, 2024 1:00 PM