Commodity Rout Shows Signs of Easing as Gold Rises

• Commodity Rout Shows Signs of Easing as Gold Rises

Gold climbed a second day amid a rebound for metal prices that helped ease a commodity rout. Bonds extended gains.

The Bloomberg Commodity Index rose for a third day, recovering from a 16-month low on May 9. European stocks struggled for direction following the biggest drop in three weeks Thursday as investors assessed global earnings and the appetite of U.S. consumers to keep spending. The Bloomberg Dollar Spot Index headed for its best week of the month as bets stack up on a Federal Reserve interest-rate increase next month.

Accelerating German economic growth failed to ignite stocks or upset bonds as investors signaled fatigue with an equity rally that pushed U.S. stocks near a record high. Treasury yields fell, tracking a move in core European government bonds as gold extended a rebound from a two-month low and industrial metals including copper, nickel and zinc advanced. Reports Friday, forecast to show U.S. inflation and retail sales both increased last month, may back the case for the Fed to keep raising interest rates.

“We expect inflation pressures to remain solid in the economy, as labor markets continue to tighten and the dollar and commodity prices are broadly stable,” Barclays Plc economist Blerina Uruçi wrote in a client note.”