What is the gold price today
? Gold prices edged up on Thursday after European Central Bank (ECB) President Mario Draghi hinted on further monetary easing to shore up euro zone’s economy, boosting investors’ sentiment and strengthening the euro.
Euro zone debt crisis which kept the global economy on edge since May 2010 needed some strong affirmative policy stance from ECB-which apparently was missing until now. ECB President’s pledge that the central bank will do whatever it takes to save the euro zone economy, offered immense sigh of relief to investors. Immediately after the announcement, Wall Street stocks rallied even as bullion climbed nearly 1%.
The comment comes at a time when economic crisis in the euro zone was turning from bad to worse. Borrowing cost on Italian and Spanish sovereign debts have soared at record pace even as concerns increased over full-fledged sovereign bailout for Spain as many of its regional governments started queuing up for federal government’s financial assistance.
Germany and France, two of the least affected countries from current debt crisis also started to show signs of economic slowdown as business confidence and industrial activities ebbed amid heightening crisis.
On Thursday, the yellow metal also broke its 100 day moving average since May 1 while options-related buying also helped boost underlying gold futures as COMEX August options have expired at Thursday's market close.
Spot gold advanced 0.7 percent to close at $1,615.44 an ounce, having earlier touched a three-week high at $1,621.41.
U.S. gold futures also gained $7 an ounce to settle at $1,615.1. According to a preliminary data provided by Reuters trading volume was more than 50 percent above its 30-day average.
Commenting on Draghi’s statement and its possible impact on gold’s prices, Adam Sarhan, chief executive of Sarhan Capital, said to Reuters, “Fundamentally, gold is definitely improved big time this morning because of comments by Draghi to save the euro, which basically means he's going to print money.. (and) If he prints money that means gold is going higher.”
“Right now gold is testing resistance. If we can break above it, we will get another leg higher,” added Sarhan.
Technical chart shows that gold’s second straight session of sharp gains have helped the metal to get nearer to breaking above a broad trading range in the past three months.
In its note to investors, CitiFX strategists wrote, “gold is underpinned by a bullish double-bottom pattern and its next target is near $1,800 an ounce after clearing good resistance at $1,688 an ounce.”
Furthermore, improved risk appetite among investors and one percent slide in the value of dollar vis-s-vis euro also boosted equity buying and other commodities, supporting gold prices. On Thursday S&P 500 Index climbed 1.5%.
According James Steel, metal analyst at HSBC, the spotlight will be on U.S. second quarter GDP data, scheduled to be released on Friday. The economic indicator will offer a good hint on further possible monetary stimulus from the fed, says Steel.
Nevertheless, gold’s demand in physical market continues to remain muted as India—world’s biggest consumer of gold- grapples with tumbling Indian rupee, making imports expensive.
Meanwhile, the SPDR Gold Trust (ETF) (NYSE: GLD
), world’s biggest gold-backed-exchanged-traded fund reported 2.1 tons of outflows on Wednesday. This week, the fund witnessed its biggest outflow.
In some other precious metal markets, Silver edged up 0.7 percent to $27.50 an ounce, while platinum gained 0.8 percent at $1,402.74 an ounce and spot palladium advanced 0.7 percent to settle at $565.99 an ounce.
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