Gold futures surged the most in 14 days on Thursday as a consequence of conjecture about China preparing to publicize additional efforts to intervene and spur the globe's second-largest economy, according to Bloomberg.
The move by the Asian nation is projected to spur economic development and growth, which also drives demand for bullion's capacities of storing wealth.
For the fifth consecutive month, industrial companies in China saw profits fall last month, according to the National Statistics Bureau. Thus far this quarter, bullion has gained 10 percent, largely prompted by the U.S. Central Bank announcing a third round of quantitative easing earlier this month.
One broker said the yellowish metal is poised to have the same type of reaction if the Asian nation moves forward with its stimulus policy.
"News out of China is positive for gold," broker Carlos Perez-Santalla with PVM Futures Inc. in Hoboken, New Jersey, told the news source. "Prices continue to remain well supported from the Fed announcement."
At 10:27 a.m. on Thursday, gold futures climbed 0.81 percent, a $14.20 lift to $1,767.80 per troy ounce.
Gold futures thus far this year have advanced roughly 12 percent as the precious metal drives toward a 12th consecutive year of gains.
With the third quarter's trading sessions set to close at the end of this week, bullion is soon to embark in the stretch run while within striking distance of the milestone price of $1,800 per troy ounce.
On Wednesday, the yellowish metal scraped its lowest value in two weeks, Reuters reports.
Spanish questions remain
With Spain pushing up the release of its plan to implement austerity measures, observers also note a postponement in when the country will request bailout aid, according to Reuters.
Investors, traders and analysts are anticipating the nation's request for a rescue to the country's debt-hobbled banks, but the uncertainty is trying their will.
Spain and Greece – the two-time recipient of bailout aid since the sovereign debt scourge has been attacking euro zone banks, markets and public finance systems during the past three years – also are seeing increasingly fierce public protests amid the austerity measures.
As September's trading days come to a close on Friday, gold is set to achieve its strongest quarterly gain in at least two years. Those gains are projected to be nearly 10 percent.
The U.S. dollar, which typically performs the inverse of the precious metal, was softening in value on Thursday, which also proved to be beneficial to gold.
But one analyst said that news as of late points to the debt scourge's lasting impression.
"Short term, I think we'll see more consolidation. We'll have to see how the dollar performs. As we've seen in the last 48 hours, the crisis in Europe has resurfaced," analyst Robin Bhar with Credit Agricole told the news source. "If it comes back with a vengeance, the euro will stay weak, the dollar will stay strong, and that's going to cap the gold price."
U.S. data drives gold
The slowed-down pace of economic growth in the world's largest economy also pushed gold futures higher on Thursday, The Wall Street Journal reports.
The second quarter gross domestic product growth rate slowed to 1.3 percent, markedly lower than estimates of 1.7 percent.
The weaker data suggests the U.S. central bank will keep open its intention to ease monetary policy, which has proven to be a boon for gold.
"It was not a good number, and a number that isn't very good has been encouraging gold buyers that there will be more stimulus," vice president George Gero with RBC Capital Markets Global Futures told The Wall Street Journal.
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