Gold rises to highest since October 2014 as US rate outlook weighed

London, Jan 13: Gold extended gains to the highest in almost 12 weeks as investors assessed the timing of higher borrowing costs and the strength of the US economy amid slumping oil prices.

Gold rose by 0.9 per cent to USD 1,244.29 an ounce, the highest price since October 23 and silver by 2.8 per cent to USD 17.05 an ounce, the highest since December 15.

Bullion rose for a third day after US data last week showed falling incomes even as hiring accelerated. Oil prices that have slumped to the lowest in 5 and a 1/2 years may spur speculation that the Fed will hold back from raising interest rates.

PTI