By Claire Leow and Glenys Sim
Nov. 28 (Bloomberg) -- Gold, little changed in Asian trade, was poised for a fourth straight week of gains on speculation that the dollar may decline ahead of an expected reduction in U.S. interest rates next month.
The Federal Reserve meets on Dec. 16 with the world’s largest economy in recession. The dollar index in New York, which measures the currency against those of six trading partners, has dropped this week for the first time in four weeks, declining 3.1 percent to 85.453.
“As there are no indicators due today, we expect to see a rather quiet trading session,” Tobias Merath, head of commodity research at Credit Suisse Group, said in a note today. “If anything, price direction is likely to come from the dollar.”
Gold for immediate delivery was little changed at $814.90 an ounce at 3:19 p.m. in Singapore, gaining 1.8 percent this week. Silver for immediate delivery, 0.5 percent lower at $10.3062 an ounce, has gained 6.6 percent this week.
The Fed may cut key lending rates to 0.75 percent from 1 percent to bolster growth, according to the median of 69 estimates in a Bloomberg survey.
China lowered its key lending rate effective yesterday less than three weeks after unveiling a 4 trillion yuan ($586 billion) stimulus plan to revive economic growth. The key one-year lending rate dropped 108 basis points to 5.58 percent.
Gold demand in China rose 18 percent in the third quarter of this year, the World Gold Council said Nov. 19. Demand increased 29 percent in India and 15 percent in the Middle East.
Gold for February delivery climbed 0.5 percent to $815.30 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange at 3:20 p.m. in Singapore.
To contact the reporter on this story: Claire Leow in Singapore at at cleow@bloomberg.net
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