Investing.com - Gold futures extended gains on Thursday, after the European Central Bank lowered its benchmark interest rate to a record low in November.
Lower interest rates can give gold a lift, as it decreases the relative cost of holding on to the metal.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,322.30 a troy ounce during European afternoon trade, up 0.35%.
Prices climbed to a session high of USD1,325.70 a troy ounce immediately after the European rate decision. The December contract ended 0.74% higher on Wednesday to settle at USD1,317.80 a troy ounce.
Gold futures were likely to find support at USD1,273.80 a troy ounce, the low from October 17 and resistance at USD1,327.30, the high from November 1.
The ECB said it was lowering its benchmark interest rate to a record-low 0.25%, confounding expectations for the central bank to hold rates steady.
The central bank also cut its marginal lending to 0.75% from 1% and left its deposit facility rate unchanged at 0.0%.
ECB president Mario Draghi was to comment on the decision at a press conference later in the day.
Market players now looked ahead to the release of key U.S. economic data later in the day to help assess the timing for a reduction in the Federal Reserve’s bond-purchasing program.
The U.S. is set to release preliminary data on third quarter economic growth later in the day, while October’s highly-anticipated nonfarm payrolls report is scheduled for Friday.
Elsewhere on the Comex, silver for December delivery advanced 0.65% to trade at USD21.91 a troy ounce, while copper for December delivery inched up 0.5% to trade at USD3.254 a pound.
Lower interest rates can give gold a lift, as it decreases the relative cost of holding on to the metal.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,322.30 a troy ounce during European afternoon trade, up 0.35%.
Prices climbed to a session high of USD1,325.70 a troy ounce immediately after the European rate decision. The December contract ended 0.74% higher on Wednesday to settle at USD1,317.80 a troy ounce.
Gold futures were likely to find support at USD1,273.80 a troy ounce, the low from October 17 and resistance at USD1,327.30, the high from November 1.
The ECB said it was lowering its benchmark interest rate to a record-low 0.25%, confounding expectations for the central bank to hold rates steady.
The central bank also cut its marginal lending to 0.75% from 1% and left its deposit facility rate unchanged at 0.0%.
ECB president Mario Draghi was to comment on the decision at a press conference later in the day.
Market players now looked ahead to the release of key U.S. economic data later in the day to help assess the timing for a reduction in the Federal Reserve’s bond-purchasing program.
The U.S. is set to release preliminary data on third quarter economic growth later in the day, while October’s highly-anticipated nonfarm payrolls report is scheduled for Friday.
Elsewhere on the Comex, silver for December delivery advanced 0.65% to trade at USD21.91 a troy ounce, while copper for December delivery inched up 0.5% to trade at USD3.254 a pound.