Gold Futures Climb to Highest in Three Weeks on U.S. Jobs Data

Gold rose to the highest in three weeks after payrolls in the U.S. climbed less than projected in September, increasing speculation that the Federal Reserve will maintain monetary stimulus to boost economic growth.

The addition of 148,000 workers followed a revised 193,000 rise in August, Labor Department figures showed today. The median forecast of 93 economists surveyed by Bloomberg called for a 180,000 advance. The report, delayed by the 16-day government shutdown that ended Oct. 17, was originally slated for Oct. 4.

“The payrolls data is pushing gold higher as investors think the economy needs more support to gain momentum,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview.

Gold futures for December delivery climbed 0.9 percent to $1,327.70 an ounce at 9 a.m. on the Comex in New York, after reaching $1,337.90, the highest for a most-active contract since Sept. 30. The price fell as much as 0.5 percent before the jobs data was released.

Prices are set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value and on speculation the Fed will slow debt purchases. Policy makers will delay reducing bond buying until March, according to the median estimate of 40 economists in an Oct. 17-18 Bloomberg survey.

Bullion rose 70 percent from December 2008 to June 2011 as the central bank pumped more than $2 trillion into the financial system. Some investors bought gold and silver as a hedge against accelerating consumer prices and protection against currency weakness.

Silver futures for December delivery added 0.6 percent to $22.42 an ounce in New York after dropping as much as 1.3 percent.

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