Gold

Gold: rebounded from a four-week low after ECB President Mario Draghi left the door open for further interest-rate cuts to bolster the economy, enhancing the metal’s appeal as an alternative investment. Weakness will persist into next year, Draghi said at a press conference after policy makers kept the benchmark rate at a record low of 0.75%. The ECB forecasts the economy will shrink 0.5% this year, more than the 0.4% contraction predicted in Sep. FuturePath Trading says, the possibility of an interest-rate cut is supportive for gold; also some of the liquidation may also have run its course, and people are buying against the lows. Gold futures for Feb delivery rose 0.5% to settle at US$1,701.80/oz. Morgan Stanley affirms its call for gold as a top commodity pick for 2013 on demand from central banks and investors buying. Goldman Sachs says that the metal will probably peak in 2013 and decline the following year as U.S. economic growth accelerates. GLD 10US$ is +0.6% at US$165.06.