Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold rallies 1% on ECB stimulus measures

Published 06/05/2014, 09:04 AM
Updated 06/05/2014, 09:04 AM
Gold jumps after ECB announces fresh stimulus measures

Gold jumps after ECB announces fresh stimulus measures

Investing.com - Gold prices rallied 1% on Thursday, as investors digested a package of fresh stimulus measures by the European Central Bank.

On the Comex division of the New York Mercantile Exchange, gold for August delivery rose 0.89%, or $11.10 to trade at $1,255.40 a troy ounce during U.S. morning hours.

Prices rallied by as much as 1.06% earlier to hit a session high of $1,257.70. Gold declined 0.02%, or 20 cents, on Wednesday to settle at $1,244.30. Prices hit an 18-week low of $1,240.20 on June 3.

Prices were likely to find support at $1,237.50 an ounce, the low from January 30 and resistance at $1,260.30, the high from May 30.

The European Central Bank cut its benchmark interest rate to a record-low 0.15% from the 0.25% rate held since November earlier in the day.

The central bank also cut its marginal lending rate to 0.40% from 0.75% and lowered its deposit facility rate to -0.10% from 0.0%, thereby charging commercial banks for deposits parked overnight with the central bank.

Speaking at the ECB’s post-policy meeting press conference, Draghi outlined a number of other liquidity-boosting measures, including a targeted long term loan program and said it was preparing for asset-backed security purchases.

The comments saw the euro tumble to a four-month low of 1.3501 against the U.S. dollar.

Gold found additional support after data showed that the number of people who filed for unemployment assistance in the U.S. last week rose more than expected.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 31 increased by 8,000 to a seasonally adjusted 312,000 from the previous week’s revised total of 304,000.

Analysts had expected jobless claims to rise by 6,000 to 310,000 last week.

Also on the Comex, silver for July delivery jumped 1.07%, or 20.1 cents, to trade at $18.99 a troy ounce.

Elsewhere in metals trading, copper for July delivery fell 0.3%, or 0.9 cents, to trade at $3.084 a pound amid growing concerns over the demand outlook in China.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.