Gold Swings After Slumping Most in Week on U.S. Stimulus Outlook

Gold was little changed after its biggest loss in more than a week as investors weighed the outlook for the Federal Reserve’s stimulus measures before a government report today that may show jobless claims decreased.

Bullion for immediate delivery was at $1,334.01 an ounce by 8:42 a.m. in Singapore after retreating as much as 0.2 percent. Prices fell 0.5 percent to $1,333.42 yesterday, the biggest loss at close since Oct. 11. Gold for December delivery was little changed at $1,333.80 an ounce on the Comex.

Jobless claims in the U.S. probably decreased to 340,000 in the week ended Oct. 19 from 358,000 in the prior period, according to a Bloomberg survey. Gold climbed to the highest in three weeks on Oct. 22 after U.S. employers added fewer jobs in September than economists had estimated, spurring bets the Fed may maintain its $85 billion monthly bond purchases. Bullion lost 20 percent this year amid speculation the central bank will curb the asset purchases.

Policy makers unexpectedly refrained last month from slowing the bond buying. The central bank will delay a reduction in the stimulus until March, according to economists in an Oct. 17-18 Bloomberg survey. Gold rose 70 percent from December 2008 to June 2011 as the Fed pumped more than $2 trillion into the financial system to boost the economy.

 (Source: Bloomberg)