Gold rises to highest since October as US rate outlook weighed
London (Jan 13) Gold extended gains to the highest in almost 12 weeks as investors assessed the timing of higher borrowing costs and the strength of the US economy amid slumping oil prices.
Gold rose by 0.9% to $1,244.29 an ounce, the highest price since October 23 and silver by 2.8% to $17.05 an ounce, the highest since December 15.
Bullion rose for a third day after US data last week showed falling incomes even as hiring accelerated.
Oil prices that have slumped to the lowest in 5 and 1/2 yearsmay spur speculation that the Fed will hold back from raising interest rates.