Gold prices extend rally on US Federal Reserves stimulus

Gold inched up on Friday,extending its 2 per cent rally from the previous session.

Written by Agencies | Singapore | Published: September 14, 2012 9:55 am

Gold inched up on Friday,extending its 2 per cent rally from the previous session after the U.S. Federal Reserve launched a new round of stimulus to kick-start the economy.

FUNDAMENTALS

Spot gold was up 0.1 percent at $1,768.44 an ounce as of 0032 GMT,on course for a weekly gain of 1.9 percent and a fourth consecutive week of rises.

U.S. gold was little changed at $1,771.30.

The Federal Reserve launched another aggressive stimulus program on Thursday,saying it would pump $40 billion into the U.S. economy per month until it saw a sustained upturn in the jobs market and keep near-zero interest rates until at least mid-2015.

Economic growth in the euro zone economy is expected to remain weak and heightened uncertainty is weighing on confidence,the European Central Bank said on Thursday in its monthly bulletin,adding that inflation expectations remained firmly anchored.

The slowdown in leading emerging-market economies China,India and Russia will persist over the coming quarters,while the outlook for the euro zone remains weak,the OECD said on Thursday.

Spot platinum hit a six-month high of $1,695.24 an ounce,as concerns about supply deepened with ongoing labour unrest in top producer South Africa’s mining sector. The metal is headed for a 7-percent rise on the week,its biggest weekly gain since last October.

Holdings of SPDR Gold Trust,the world’s biggest gold-backed exchange-traded fund,inched up 0.2 percent on the day to 1,292.432 tonnes by Sept. 13.

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