Gold Rises to $1,255 an Ounce Amid Growth Uncertainty

Gold rose to $1,255 an ounce — its highest level in a month — due to a drop in equities combined with a lackluster jobs report last week that increased uncertainty surrounding the U.S. growth outlook, Reuters reported.

“The support that we are seeing for gold is coming from the weak U.S. payrolls number last week and (for that reason) we have seen some weakness in the dollar and equities,” Deutsche Bank analyst Michael Lewis said.

U.S. gold futures for February delivery were up 0.2 percent at $1,253.70 an ounce, while spot gold rose to $1,254 an ounce, an increase of 0.1 percent, Reuters reported.

Despite the temporary boost to gold prices, Lewis said he doesn’t expect a durable rally in gold as Fed tapering accelerates.