Gold up as Bank of England rolls out stimulus

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Thursday, after the Bank of England announced a stimulus program to support the country's economy after the Brexit vote.

The most active gold contract for December delivery rose 2.7 U.S. dollars, or 0.20 percent, to settle at 1,367.40 dollars per ounce.

The Bank of England on Thursday cut its main interest rate by a quarter percentage point to a record low 0.25 percent, the first rate cut since March 2009.

Lower rates tend to support prices for gold, which yields nothing and struggles to compete with yield-bearing investments when borrowing costs rise.

With central banks in Europe and Japan also easing and little expectations that the Federal Reserve will lift rates in coming months, some investors believe there may be more gains ahead for the precious metal.

Gold was given further support as the U.S. Dow Jones Industrial Average fell by 18 points, or 0.1 percent as of 1900 GMT.

Analysts note 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.

But gold was put under pressure as a report released by the U.S. Department of Labor showed initial jobless claims increasing by 3,000 to 269,000 which analysts note was better than expected.

Silver for September delivery fell 2.8 cents, or 0.14 percent, to close at 20.443 dollars per ounce. Platinum for October delivery dropped 4.6 dollars, or 0.39 percent, to close at 1,165 dollars per ounce. Endit