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Sunday, July 05, 2020

Gold firms as markets eye ECB decision for further stimulus

Spot gold was up 0.5% at $1,706.15 per ounce at 1004 GMT, after a 1.7% drop on Wednesday. US gold futures climbed 0.5% to $1,712.40.

By: Reuters | Published: June 4, 2020 5:17:13 pm
Gold scales 7-year high on rising economic worries, Fed stimulus, SPDR Gold holdings rise to highest since June 2013, global gold price news tuesday, business news india, commodity market news, indian express business news One kilogramm fine gold bar are pictured in the Pro Aurum KG in Munich, Germany. (Image source: Bloomberg)

Gold rose on Thursday, after a steep decline in the previous session due to robust equities, while investors awaited the European Central Bank’s (ECB) policy decision where it is expected to announce more stimulus measures.

Spot gold was up 0.5% at $1,706.15 per ounce at 1004 GMT, after a 1.7% drop on Wednesday. US gold futures climbed 0.5% to $1,712.40.

“Gold is trying to recoup some losses incurred over the last couple of days,” Commerzbank analyst Eugen Weinberg said, adding a weaker dollar was supporting the metal.

“Long term picture for gold prices remains quite good. Prices are holding quite well despite the recent rally in equities and at the same time ETF (exchange-traded fund) demand is very strong,” he said.

The dollar index edged up against key rivals on Thursday, but was down about 0.8% so far this week, having touched its lowest since mid March on Wednesday.

Holdings in the world’s largest gold-backed ETF, SPDR Gold Trust, rose to 1,133.37 tonnes on Wednesday, the highest since April 2013.

Investors are awaiting the release of the weekly jobless claims report from the Unites States, due at 1230 GMT, and the ECB’s policy decision at 1145 GMT.

The ECB is widely expected to give the ailing euro zone economy another shot in the arm and the only question is the timing, with analysts split between a move on Thursday and a delay until July.

Elsewhere, palladium fell 0.3% to $1,943.42, while platinum rose 0.7% to $832.23. Silver inched up 0.1% to $17.68, but was below the more-than three-month high of $18.36 scaled on Monday.

“Some people are buying silver just because it’s much cheaper than gold/platinum,” a trader from Tokyo-based retailer Tokuriki Honten said, adding prices were down due to profit taking.

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