Gold prices climbed in Thursday's trading session, as more central banks increasedtheir holdings of the yellow metal following a spectacular plunge in prices this month.
Central bank purchases and increasing physical demand boosted gold prices on Thursday, the International Monetary Fund said on Wednesday. Russia and Turkey raised their gold reserves in March, yet daily falls in holdings by exchange-traded funds will likely cap gains.
- Gold gained 1.60 percent or 22.71 points to trade at 1,446.47
- Silver rose 1.50% to trade around 23.27
- Platinum edged higher by 0.91% to 1,442.50
- Palladium inched 0.92% up to 673.80
Gold was positively affected in the previous session after the U.S. dollar fell against major counterparts, after the durable goods orders recorded their biggest drop since August in March.
A report by the U.S. Commerce Department showed that bookings for durable goods dropped 5.7 percent in March, from a revised increase of 4.3 percent in the previous month, and worse than analysts’ estimates that called a drop by 3.0 percent.
As of (09:34 GMT+3), the dollar index fell on Thursday, to hover around 82.87 after opening at 83.06; USDIX hit a high of 83.06 and a low of 82.82.
If economic data covering April remains gloomy, the Federal Reserve isn’t likely to give any signs of an early withdrawal of quantitative easing. Central bank’s monetary easing has been a supportive factor for gold, as it can lead to inflation and gold is a hedge against inflation.
Meanwhile, traders will be waiting for the advanced GDP report expected to rush out of the United Kingdom on Thursday. Weak economic outlook might force policymakers at the BoE to embark on a bolder plan to stimulate U.K. growth when Mark Carney takes the helm in the summer.