Stimulus story is lending support to gold

FXstreet.com (London) - Spot Gold is meeting the 1,350 level and July’s resistance while the yellow metal advanced again high on speculation that the U.S. Federal Reserve will maintain the pace of monetary stimulus to boost economic growth.

The dollar weakened with investors assessing manufacturing data from the world’s two largest economies U.S. factory output expanded in October at a slower pace than forecast while Chinese manufacturing output strengthened this month more than anticipated. Gold futures rose to a three-week high on speculation that Fed tapering is off the cards for the time being. Fed policy makers may delay reducing $85 billion in monthly bond purchases until March.