Gold gains on speculation of further stimulus by China

LONDON: Gold today climbed on speculation slowing growth in China will spur policymakers to add to stimulus measures.

Gold rose 0.6 per cent to USD 1,581.20 an ounce and silver climbed one per cent to USD 27.44 an ounce.

Gold slid to this month's low yesterday after Federal Reserve minutes disappointed investors seeking a more definitive signal for further quantitative-easing measures.

Data today showed China's growth slowed for a sixth quarter to the weakest pace since the global financial crisis, putting pressure on Premier Wen Jiabao to boost stimulus to secure a second-half economic rebound.

Holdings in the SPDR Gold Trust, the biggest bullion- backed exchange-traded product, fell 1.5 tonnes to 1,269.7 tonnes yesterday, the lowest level since May 23. ( Bloomberg)