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Gold Gains On ECB Rate Cut, Rally In Stocks May Cap Gains

ByICN.com
Published 05/06/2013, 04:47 AM
Updated 07/09/2023, 06:31 AM

- Spot gold gained 0.58 percent or 8.50 points to trade at 1,475.76

Other metals:

- Silver rose 78%, to trade at around 24.21

- Platinum edged higher by 0.07% to 1,500.95

- Palladium gained 0.22%, up to 693.65

Gold prices edged higher on Monday trading, near its two-week high as it still finds support from a weaker dollar and the ECB decision to cut interest rates. Gains could be capped as better-than-expected U.S. jobs data slashed speculations the Federal Reserve may boost stimulus.

Markets had a turbulent reaction after figures from the U.S. Bureau of Labor Statistics showed that job creation accelerated in April, with the U.S. economy adding 165 thousand jobs above expectations, and the unemployment rate edging lower to 7.5%.

The cheerful jobs report came only few days after the Fed’s decided to keep its benchmark interest rate unchanged at a record low between 0.0% and 0.25%, maintaining its monthly $85 billion of bond purchases.

As of 09:38 (GMT+3), the dollar index edged higher to trade around 82.21 after opening at 82.18; USDIX hit a high of 82.21 and a low of 82.04.

An interest-rate cut by the ECB and firm physical gold demand in Asia are still supporting gold prices; a surge in physical buying in Asia and other parts of the world lifted gold prices from recent lows.

Eyes will focus on the Bank of England (BOE), as its due announce its monetary decisions for May later this week. The BOE is estimated to continue leaving both interest rate and asset purchases at 0.50% and 375 billion pounds respectively.

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