Fidelity SPDR Advertisement
Home > Boards > Free Zone > Penny Trading - Technical > DAYTRADER''S FORUM

Gold extends gains after ECB, lower dollar

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
lady luck Member Profile
Followed By 38
Posts 7,405
Boards Moderated 0
Alias Born 08/31/09
160x600 placeholder
Putin Circumspect on Re-Election, but Critical of Western Sanctions
Russian President Vladimir Putin said he would not retain his post forever, but doesn't rule out running in 2018, and said the Western sanctions against Moscow violate human rights and are aimed at sowing discord in Russian society.
China Mobile's Need for Speed -- Barron's Asia
Intel Projects More Growth in 2015 -- Update
Zoetis Unveils $500 Million Stock Buyback Plan -- Update
Technip Bids for CGG -- 2nd Update
Appeals Court Grants TV Programmers Stay in FCC Dispute -- Update
Wireless Carriers Bid Up US Airwaves To Record
Two Top-Producing Advisers Leave Merrill Lynch--Street Moves
Chinese Premier Plays Down Qualcomm's Woes
Activision Blizzard to Get $275 Million in Settlement
lady luck   Thursday, 01/12/12 10:19:44 AM
Re: None
Post # of 521416 
Gold extends gains after ECB, lower dollar

SAN FRANCISCO (MarketWatch) — Gold futures rose Thursday, on track for a third session of gains as a trickle of safe-haven flows returned to the market after the European Central Bank warned of “substantial” downside risks for the euro zone’s outlook and the dollar traded lower.

Gold for February delivery GC2G +1.27% added $19.40, or 1.2%, to $1,659 an ounce on the Comex division of the New York Mercantile Exchange. A close around these levels would be gold’s highest since Dec. 13.

The metal ended at its best in four weeks in floor trading Wednesday, helped by a jump in Chinese gold imports. Read more on Wednesday's gold session.

The euro zone will most likely experience a short recession, according to economists in a new survey. Photo: Getty Images.

“Gold remains very firm in contrast to the weakness-prone equity and commodities markets,” analysts with Commerzbank said in a note to clients.

Gold “is living up to its reputation as a safe haven, at least for the time being,” as some of the recent price weakness appeared to be over, they added.

Markets keyed in bond auctions in Spain and Italy. Their good results lifted the euro. Later Thursday, the European Central Bank met and left its key lending rate unchanged, as expected.

At a press conference after the rate decision, ECB President Mario Draghi said the euro zone’s outlook still faces high uncertainty and substantial downside risks, such as further intensification of tensions in the debt markets.

There are “tentative signs of stabilization,” but it was hard to make a confident judgment based on those preliminary data, Draghi said.

The decision to keep interest rates on hold Thursday was unanimous and the bank’s monetary stance remains accommodative, he said. “Uncertainty is very high and we will monitor all developments and we will stand ready to act.”

A weaker dollar also lent support to gold, with the dollar index DXY -0.60% , which measures the greenback against a basket of six other major currencies, slipping to 80.911 from 81.313 in North American trade late Wednesday. Read more on currencies.

A weaker greenback tends to encourage gold investors, as it makes the metal more affordable to holders of other currencies.

Most metals tracked gold higher, with silver for March delivery SI2H +2.26% up 66 cents, or 2.2%, to $30.55 an ounce.

April platinum PL2J +0.25% added $6.80, or 0.5%, to $1,504 an ounce. March palladium PA2H -0.09% declined $1.75, or 0.3%, to $643.90 an ounce.

March copper HG2H +3.10% turned higher, up 11 cents, or 3.1%, to $3.65 a pound.

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist