Gold gain on stimulus, physical purchases

LONDON: Gold today gained for the first time in three days on speculation central banks' stimulus efforts and more physical purchases will spur demand.

The precious metal advanced 0.2 per cent to USD 1,712.47 an ounce and silver by 0.5 per cent to USD 31.93 an ounce.

The Bank of Japan expanded its asset-purchase program by 11 trillion yen (USD 138 billion) to 66 trillion yen, it said after a policy meeting today.

Barclays pointed to signs of improving physical demand in India, last year's biggest gold buyer. Indian consumers usually boost purchases before the wedding season and religious festivals later this year.

All US equity markets will be shut for a second day today after Hurricane Sandy slammed into the East Coast, driving floodwaters to life-threatening levels and leaving millions of people without power. CME Group Inc said products on Comex will settle at normal times.

Gold reached a 10-month high of USD 1,796.05 on October 5 as central banks from Europe to China to the US pledged more stimulus to boost economies. The BOJ said a separate credit loan program will stay at 25 trillion yen and it will also offer unlimited loans to banks to boost credit demand.