ECB measures lift yellow metal
23/01/2015 09:30
Gold futures closed higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal after the European Central Bank (ECB) unleashed QE, committing to inject at least 1.1 trillion euro to boost inflation, bolstering the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus.
The ECB which kept its key benchmark rate at a record low of 0.05 per cent unveiled a bigger than expected asset-purchase program including private and public securities, as it seeks to avert the threat of deflation in the 19-member Euro area economy.
The ECB announced monthly asset purchases of up to 60 billion euro through September 2016. The ECB said that the measures may lift the Euro area inflation rate by 0.4 percentage point this year and by 0.3 percentage point in 2016.
Russia, the world’s fifth biggest holder of bullion reserves said that its gold reserves rose to about 38.8 million ounces by January 1 from 38.2 million ounces a month earlier.
A stronger dollar curbed the demand for the bullion as an alternative asset, trimming gains in the precious metal. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Gold may extend gains today after ECB unveiled an aggressive QE program.
At the MCX, Gold futures for February 2015 contract closed at Rs 28,036 per 10 gram, up by 0.21 per cent after opening at Rs 27,941, against the previous closing price of Rs 27,977. It touched the intra-day high of Rs 28,236 till the closing.
23/01/2015 09:30
Gold futures closed higher in the domestic market on Thursday as investors and speculators booked fresh positions in the precious metal after the European Central Bank (ECB) unleashed QE, committing to inject at least 1.1 trillion euro to boost inflation, bolstering the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus.
The ECB which kept its key benchmark rate at a record low of 0.05 per cent unveiled a bigger than expected asset-purchase program including private and public securities, as it seeks to avert the threat of deflation in the 19-member Euro area economy.
The ECB announced monthly asset purchases of up to 60 billion euro through September 2016. The ECB said that the measures may lift the Euro area inflation rate by 0.4 percentage point this year and by 0.3 percentage point in 2016.
Russia, the world’s fifth biggest holder of bullion reserves said that its gold reserves rose to about 38.8 million ounces by January 1 from 38.2 million ounces a month earlier.
A stronger dollar curbed the demand for the bullion as an alternative asset, trimming gains in the precious metal. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand.
Gold may extend gains today after ECB unveiled an aggressive QE program.
At the MCX, Gold futures for February 2015 contract closed at Rs 28,036 per 10 gram, up by 0.21 per cent after opening at Rs 27,941, against the previous closing price of Rs 27,977. It touched the intra-day high of Rs 28,236 till the closing.
