Gold Climbs Above $1,600 as U.S. Data Boosts Easing Prospects


03/07/2012 08:26 AST  Bloomberg

Gold advanced, trading above $1,600 an ounce, as manufacturing in the U.S. trailed estimates, boosting prospects of further stimulus by the Federal Reserve to spur growth and increasing demand for bullion as a haven.

Spot gold rose as much as 0.5 percent to $1,605.50 an ounce and was at $1,602.15 by 12:39 p.m. in Singapore. August-delivery bullion gained as much as 0.5 percent to $1,605.70 an ounce on the Comex in New York, before trading at $1,602.50.

Manufacturing in the U.S. shrank in June to 49.7, worse than the most-pessimistic forecast in a Bloomberg News survey, from 53.5 in May, data yesterday showed, helping the dollar rebound from its biggest drop in eight months against a six- currency basket including the euro. The common currency fell today as euro-area unemployment reached the highest on record in May, raising concern the debt crisis is worsening.

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