Gold heads for first weekly gain since October as US jobs eyed

[SINGAPORE] Gold is heading for the first weekly advance since October after disappointment over the European Central Bank's stimulus decision spurred a rout in global equities and the biggest jump in the euro since 2009. Investors awaited the US November jobs report Friday for clues on the timing of an interest-rate increase.

Bullion for immediate delivery climbed as much as 0.3 per cent to US$1,065.12 an ounce, extending a 0.8 per cent increase a day earlier, and traded at US$1,062.86 by 9:30 am in Singapore, according to Bloomberg generic pricing. The metal is up 0.5 per cent this week after rebounding from US$1,046.44 on Thursday, the lowest since February 2010.

Disillusionment with the ECB decision, which involved a rate cut and an extension in asset purchases, caught the attention of Federal Reserve Chair Janet Yellen, who said in an address to Congress that "the market expected some actions that were not forthcoming."

The Bloomberg Dollar Spot Index fell 1.4 per cent on Thursday, boosting demand for alternative assets. Payrolls are the most watched piece of data before US policy makers meet on interest rates Dec 15-16.

BLOOMBERG