Tuesday, 10 April 2012 00:25
NEW YORK/LONDON: Gold rose almost 1 percent in thin holiday trade o n M onday, breaking ranks with other commodities and equities, after disappointing US jobs data last week revived speculation that the Federal Reserve might try to stimulate the US economy.
The precious metal, which fell more than 2 percent last week, also received a boost from physical buying out of India following the end of a jewelers strike.
A bigger-than-expected increase in Chinese consumer prices in March contributed to the buying of gold as an inflation hedge.
Bullion has dropped 8 percent since the end of February after a run of strong US economic data convinced many fund managers that the Fed would not launch another round of stimulus.
However, market watchers said last Friday's data showing US employers had hired far fewer workers in March than in previous months could keep the door open for more US stimulus.
"In the next few ...