Azernews.Az

By Bloomberg

Gold climbed a second day after a manufacturing gauge in the New York area slumped, clouding the outlook for the timing of higher U.S. interest rates.

Bullion for immediate delivery increased 0.2 percent to $1,119.88 an ounce at 2:31 p.m. in Singapore after ending 0.2 percent higher on Monday, according to Bloomberg generic pricing. The metal rose last week for the first time since June after China devalued the yuan, spurring haven demand.

Gold investors are scrutinizing U.S. data for clues as to when the Federal Reserve will start to tighten policy after bullion prices sank to a five-year low last month. The Fed Bank of New York’s Empire State index unexpectedly dropped in August to the lowest since April 2009, weakening the case for higher borrowing costs. Minutes of the Fed policy makers’ meeting in July are due for release on Wednesday.

“Signs of slower U.S. growth have supported gold prices,” Australia & New Zealand Banking Group Ltd. said in a report on Tuesday. “However, the weakness in the headline number appears overdone, with the six-month outlook component holding up, supported by new orders and shipments.”

Gold fell this year as signs of an improving U.S. economy brought the central bank closer to raising rates, which hurt the allure of bullion as the metal doesn’t pay interest. On Monday, traders were pricing in a 48 percent probability the Fed will tighten next month, compared with 54 percent on Aug. 7.

Goldcorp Inc., North America’s largest producer by market value, is betting on a rebound with a new $2 billion mine named Eleonore, 500 miles north of Montreal. Still, investor holdings in exchange-traded products backed by the metal are close to their lowest level since 2009, data compiled by Bloomberg show.

Gold futures for December delivery were little changed at $1,118.80 an ounce on the Comex in New York after a 0.5 percent climb on Monday.

Silver for immediate delivery retreated 0.3 percent to $15.2935 an ounce. Spot platinum rose 0.2 percent to $1,000.55 an ounce, while palladium lost 0.4 percent to $612.74 an ounce.