Gold up on ECB stimulus prospects

Gold futures on the COMEX division of the New York Mercantile Exchange rose Tuesday as a report suggested that the European Central Bank (ECB) might buy corporate bonds to support growth.

The most active gold contract for December delivery rose 7 U.S. dollars, or 0.56 percent, to settle at 1,251.7 dollars per ounce.

Gold rose for the second day in a row as a report, quoting anonymous sources, said the European Central Bank is considering purchasing corporate bonds on the secondary market in an effort to fight deflation and that it may decide on the matter as soon as December with a view to starting purchases early next year.

The ECB has recently rolled out a series of measures to add more stimulus to the economy, including the targeted long-term refinancing operations and new programs to purchase outright asset- backed securities and covered bonds.

Investors also weighed an expectation that the U.S. Fed would delay increasing its interest rates for some time as concerns about slowing global growth are rising.

In additional, there was some good news for the U.S. economy as a report from the U.S.-based National Association of Realtors showed existing home sales rose by 2.4 percent in September to an annual rate of 5.17 million. The figure was better than expected and also the fastest pace so far in 2014.

Silver for December delivery gained 19.5 cents, or 1.12 percent, to close at 17.549 dollars per ounce. Platinum for January delivery gained 15.5 dollars, or 1.22 percent, to close at 1,283 dollars per ounce.