Gold Prices Rise as Central Banks Boost Reserves (Update 1)
Updated from 11:20 a.m. EST with settlement prices
NEW YORK (
Gold for December delivery rose $4.60 to settle at $1,728.20 an ounce at the Comex division of the New York Mercantile Exchange. The
The International Monetary Fund reported Wednesday that countries boosted their gold reserves in October by some 40 tons, including Brazil's purchase of 17.2 tons."We received some positive IMF news on 40 tons of central bank gold buying including Brazil's large addition, however with Greece talks protracted, the dollar is firming here which is pressuring gold," Sonny Tahiliani, managing director at MacroMoves, wrote in an email. Jobless claims for the week ended Nov. 17 fell 41,000 to 410,000 against the previous week's upwardly revised figure of 451,000. The weekly initial jobless claims report used to be seen as a barometer of sorts to help determine the health of the labor market and the U.S. economy as it pertained to the possibility of new quantitative easing measures from the Federal Reserve. Since the central bank passed its open-ended, mortgage-backed security purchasing program in September, the report has had less of an impact on the movement in gold prices. Weeks of talks among eurozone finance ministers as to whether they would release emergency loans to prop up Greece -- Greece's parliament has already passed an austerity package -- have failed to produce an agreement. Many market analysts expected finance ministers to announce a package this week, but a failure to reach consensus has pushed back the decision to next Monday. The lack of a solution left the euro effectively unchanged on Wednesday at $1.2824, up incrementally from the prior evening's close.
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