The price of gold jumped on Thursday after the European Central Bank lowered interest rates and the Federal Reserve reiterated its monetary policy stimulus. COMEX gold for June delivery rose $ 1, to $ 467.60 21.40 an ounce. The price of gold traded up $ 1, at $ 1 per ounce and only 448.10 473.30, even though the spot price was adding $ 9.80, Kitco Gold index. The ECB's benchmark rate 25 basis points to 0.5%-a record low-0.75%, which was the baseline rate from July.
The Fed on Wednesday said the latest decision, reasoning that the Central Bank is ready to increase or reduce monetary stimulus, if necessary. Notice of decision to the central banks of the scaling back of the current transition among procurement programs. "All the funds flowing into the world economy, it also has to worry about inflation, augers, underlying bullish factor, without jeopardizing the raw materials, including precious metals," Jim Wyckoff, a senior metals analyst at Kitco.com, said in an interview.
Silver prices for July delivery increased 49 cents to $ 23.95 per ounce, while the US dollar index 0.72% to $ 83.15 was popping up after the ECB's announcement of the weakened dollar. "The economy was moving ahead strongly, if jobs increased, the unemployment rate fell, and production increased, if discussion of the [Federal Open Market Committee] meeting, would have been about how soon we'll reverse quantitative easing and maybe even thinking about how quickly the federal funds rate would be moving up," Benjamin Friedman, an economist at Harvard University told TheStreet.
Gold is still searching for the company's trading range after its more than 13% of the selloff in two consecutive trading sessions in the middle of April. The yellow metal has retraced about half of these losses, largely due to the support of the retail demand. "Despite the continued fall in the amount of gold held by the physically backed ETPS in the retail demand has helped the gold price to rise about 1.8 percent this week to $ 1,457 per ounce," Natixis wrote in the study into account on Thursday.
Gold mining stocks were mixed on Thursday. Shares in Gold Fields (GFI) lost 2.6%, while shares of Yamana Gold (AUY) increased by 3.1%. The number of Directors, Barrick Gold (ABX) climbed 2%. Gold ETF SPDR Gold Trust (GLD) was 0.62 percent higher at $ 141.98 ticking, even if the iShares SPDR Gold Trust (IAU) increased by 0.61% to $ 16.35.
By Joe Deaux In New York City.
