Gold rose, extending a rally for the third straight session, as it boosted hopes for stimulus measures from central banks to revive the great global economy crumbling yellow metal’s appeal as a hedge against inflation. The euro has squandered some of the gains of the previous session as investors deliberately to sell the currency to rise because of continuing concerns.
A significant increase
And increased the price of gold in the spot market 0.1 percent to 1605.89 dollars an ounce, after rising to its highest level in three weeks, surpassing the 1609.91 dollars in the previous session, its biggest daily percentage increase in nearly a month. The contract fell U.S. gold futures for August delivery was 0.2 percent to 1605.30 dollars. Silver rose 0.22 percent to the instant of $ 27.38 an ounce, while platinum rose about 0.6 percent to 1399.75 dollars and palladium 0.35 percent to 563.99 dollars an ounce.
Expectations of a supportive
Gold climbed from the first Wednesday of the highest level in three weeks, supported by expectations that the European Central Bank intervened to support the ailing public finances for the euro zone after the proposed official rescue fund lending to strengthen its capacity. Said Chen Min, an analyst at Janroy Futures in China:
Fiscal problems in Spain as well as weak data from the region made investors believe the ECB will intervene, but the basis of this rise is solid. He added, is still the position of the U.S. Federal Reserve Board vague on further monetary easing has not worsened the economic situation a lot. As a result, the opportunities for the rise of gold is not great now.
The euro fell 0.2 percent to 1.2130 dollars, down from a high level of 1.21705 dollars struck at the meeting Wednesday. Analysts said the decline in the euro may be limited before a meeting of the U.S. Federal Reserve next week but it is expected that investors remain cautious of buying the currency because of the high cost of borrowing in Spain.
Said analyst Richard Volkanhol Currency in SA. No. Me in Stockholm: The only thing that can change the downward trend of the euro is to be called the Federal Reserve further quantitative easing measures or some other additional monetary policy. He added, unless it happens will depend on what happens in the euro area.
The dollar index rose 0.1 percent to 83.586, giving up a two-week high of $ 84.10. U.S. currency and settled at 78.18 yen, hovering near its lowest level in seven weeks of 77.94 yen recorded this week. Traders said: The request of Japanese importers may limit the dollar from falling U.S. currency.