Gold jumped the most in seven weeks, tracking gains in equities and commodities, on speculation that the U.S. will take additional measures to spur economic growth, regardless of the winner in today’s presidential election.
The Standard & Poor’s GSCI Spot Index of 24 commodities advanced the most in a month, led by energy and metals, while the Dow Jones Industrial Average gained. The dollar fell. Whether President Barack Obama or Republican challenger Mitt Romney wins today, the next president will need to address a so- called fiscal cliff of more than $600 billion in tax increases and spending cuts that take effect in January unless Congress can reach a budget compromise.
“The slowdown concerns remain, and the fiscal cliff is so huge that there is no quick solution,” Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “Whoever comes to power cannot fix the problems immediately.”
Gold futures for December delivery rose 1.9 percent to settle at $1,715 an ounce at 1:53 p.m. on the Comex in New York, the biggest gain for a most-active contract since Sept. 13. Prices are up 9.5 percent this year, heading for a 12th straight annual gain as the Federal Reserve keeps interest rates at record lows to spur growth.
Read more at bloomberg.com . By Debarati Roy.