Azernews.Az

By Bloomberg

Gold rose from a three-month low as some investors were seen reversing bets on further losses amid speculation prices below $1,200 may spur purchases in China. Platinum sank to the lowest level in more than five years.

Bullion for immediate delivery rose as much as 0.4 percent to $1,171.98 an ounce and traded at $1,170.24 at 11:20 a.m. in Singapore, according to Bloomberg generic pricing. The metal fell to $1,163.84 on March 6, the lowest since Dec. 1, after a report showed U.S. employers added more jobs than forecast last month, boosting the outlook for higher interest rates.

Gold is 1.2 percent lower this year, extending a back-to- back annual decline, as evidence that the world’s largest economy is recovering boosted equities to records and cut demand for gold as a protection of wealth. The dollar climbed to the highest in more than 10 years after the jobs report.

“There’s possibly short covering and anticipation of stronger Chinese buying today,” said Victor Thianpiriya, a Singapore-based analyst at Australia and New Zealand Banking Group Ltd., who estimated prices below $1,200 will spur demand. The dollar’s strength will probably continue and pressure gold lower, he said.

Gold for April delivery added as much as 0.6 percent to $1,171.10 on the Comex, and traded at $1,169. The advance snapped five days of losses, the longest run this year.

Spot platinum slumped as much as 0.9 percent to $1,150.63 an ounce, the lowest price since July 2009, and was at $1,153.88. The metal is 4.5 percent lower this year.

Silver for immediate delivery fell 0.9 percent to $15.7605 an ounce after dropping earlier to $15.7384, the lowest level since Jan. 5. Palladium rose 0.5 percent to $822.83 an ounce, halting three days of declines.