Gold prices strengthened today to reclaim the key US$1,300 mark after the European Central Bank announced a full-blown stimulus plan.
Gold for February delivery increased 0.5% to settle at US$1,300.70 an ounce on the Comex in New York.With the Australian dollar buying about US$0.80, this is more good news for Australian gold producers with each ounce fetching A$1,624.
ECB President Mario Draghi announced on Thursday an open-ended bond-buying program worth 60 billion euros a month as part of its quantitative easing program. The central bank said it won’t buy more than a third of any issuer’s debt.
Gold also got a boost after the Danish central bank cut its key interest rate for a second time this week to counter the impact of the ECB’s QE on its currency.
Bullion is up almost 10% this year as stagnating economies challenge policy makers to generate new ways to buoy growth.
In other metals trading, March silver futures advanced US$0.17 to US$18.36 an ounce in electronic trading.
Platinum for April delivery gained US$8.40 to US$1,284.80 an ounce, while palladium for March delivery climbed US$4.05 to US$772.30 an ounce.
High-grade copper for March delivery fell US$0.03 to US$2.58 a pound.
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News: Gold breezes past US$1,300 mark
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Alex Scanlon, Managing Director & CEO
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