Off the wire
• "Good" cholesterol not always protective for heart: study  • Morocco, Brazil set to boost economy-focussed bilateral ties  • Macedonia, Switzerland to cooperate in agriculture  • News Analysis: Rocky and thorny road ahead to reach permanent truce in Yemen  • Urgent: Gold up on euro weakness  • Chinese ambassador to Namibia bids farewell  • Urgent: U.S. dollar falls against euro after ECB move  • Three, including two pregnant women, test positive for Zika virus in Norway  • UN, AU condemn attack on UNAMID patrol in Sudan's Darfur  • 2nd LD: Egypt's ex-foreign minister appointed as Arab League chief  
You are here: 　 Home

1st LD Writethru: Gold up on euro weakness

Xinhua, March 11, 2016 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Thursday as investors were concerned about the weakness in European markets in the wake of euro stimulus.

The most active gold contract for April delivery rose 15.4 U.S. dollars, or 1.22 percent, to settle at 1,272.80 dollars per ounce.

Gold rose to its highest settlement since Feb. 2, 2015, when the gold futures settled at 1,276.90 dollars per ounce.

Gold was given support as investors scrambled for a safe haven as the European Central Bank (ECB) cut its primary refinancing rate to 0.0 percent and its deposit rate to negative 0.4 percent, analysts said.

ECB President Mario Draghi's statement triggered an immediate fall in U.S. and euro equities. The U.S. Dow Jones Industrial Average fell by 127 points, or 0.75 percent as of 18:20 GMT. Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

Gold was given further support as the U.S. dollar decreased against the euro on Thursday.

There are also reports that Iran is unlikely to participate in the oil output freeze, which triggered a decrease in the price of oil. Analysts noted that any decrease in the price of oil is likely to negatively impact U.S. equities and grant support to gold because of its safe haven properties.

On the U.S. economic front, in the week ending March 5, the advance figure for seasonally adjusted initial jobless claims declined 18,000 from the previous week's revised level to 259,000, which is the lowest level since October and also below market consensus, according a report released Thursday by the Labor Department Thursday.

Traders are waiting for the U.S. Federal Reserve's Federal Open Market Committee meeting next week for an indication on the timing of a potential rate hike. According to the CMEGroup's Fedwatch tool, the current implied probability of a hike is at 20 percent at the April 2016 meeting, and 43 percent at the June 2016 meeting.

Silver for May delivery rose 18.3 cents, or 1.19 percent, to close at 15.549 dollars per ounce. Platinum for April delivery decreased 5.1 dollars, or 0.52 percent, to close at 977.70 dollars per ounce. Endit