Gold Rises to One-Week High as Slow Economies Fuel Fed Rate Bets

Gold rose to the highest in more than a week as signs of faltering global economic growth boosted speculation that the Federal Reserve will hold off on raising U.S. interest rates.

The U.S. trade deficit widened in August by the most in five months as a strong dollar and weakness in economies such as China impede sales prospects for American companies. The slowdown in emerging markets spurred the International Monetary Fund on Tuesday to cut its outlook for global growth this year, bearing out the view of Fed policy makers who cited international risks when they kept rates unchanged in September. Higher rates curb the appeal of gold because it doesn’t pay interest.