Gold Resilient as This Year’s Best Commodity as Stocks, Oil Wilt

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Gold held its ground near a three-month high as losses in global equities and oil fanned haven demand and investors reduced expectations of further U.S. rates rises.

Bullion for immediate delivery traded at $1,127.27 an ounce at 3:17 p.m. in Singapore from $1,129.01 on Tuesday, when it rose to $1,131.08, the highest level since Nov. 3, according to Bloomberg generic pricing. Returns from the metal have outperformed all other members of the Bloomberg Commodity Index this year, surging 6.3 percent, as global stocks sank 7.9 percent.

The “market situation suggests that gold is one of the beneficiaries of the market gyrations,” Bob Takai, chief executive officer and president of Sumitomo Corporation Global Research Co., said by phone. “I’m not sure if the Fed will really continue to raise interest rates for the rest of the year,” he said, citing recent U.S. growth data.

* Federal Reserve Bank of Kansas City President Esther George said recent financial-market turmoil should not have been surprising and is no reason to delay further interest-rate increases.

* Standard & Poor’s said Friday’s soft fourth-quarter U.S. GDP report indicated that the Fed has more time before it will raise interest rates further this year and may only do so twice, instead of four times.

* The chances of a U.S. rate rise in March are 12 percent, down from 51 percent on Jan. 1, according to data compiled by Bloomberg.

* Holdings in gold-backed exchange-traded products rose on Tuesday for 12th straight session, the longest run since December 2012.

* Spot silver fell 0.1 percent, platinum rose 0.4 percent and palladium climbed 0.7 percent.

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