Gold Rises for Fourth Straight Day

Industry News 08:57:18AM Feb 24, 2012 Source:SMM

Gold rose to a three-month high on Thursday, extending to a fourth straight day of gains, as a US dollar drop and expectations of easy monetary policies underpinned gold's inflation hedge appeal.

Profit taking weighed on platinum price, which eased after touching a five-month peak earlier in the session as a damaging strike in major producer South Africa ground on.

Increase in risk appetite lifted gold along with the euro and US equities after data showed the number of Americans filing new claims for jobless benefits held at the lowest level since the early day of the 2007-2009 recession. Silver also jumped 3 per cen.

Bullion has benefited from expectations for further easing by China and after the US Federal Reserve last month said it would keep rates near zero at least until late 2014. Lingering economic uncertainty after the Greece rescue package also helped.

"Investors continue to think that the wave of easy monetary policies will still be available for gold to take a ride on, as the Greek bailout deal rekindled fears about central banks printing money," said Mark Luschini, chief investment strategist of Janney Montgomery Scott, which manages $US54 billion in assets.

The European Central Bank's long-term refinancing operation also put more liquidity into the system, which boosted gold prices, Luschini said.

Spot gold was up 0.2 per cent at $US1780.06 an ounce in late New York trade, having earlier risen to a three-month high of $US1787.11.

Bullion's four-day winning streak was its longest since early January.

US COMEX gold futures for April delivery settled up $US15 at $US1786.30 an ounce, with volume about 25 per cent below its 30-day average, preliminary Reuters data showed.

Silver was up 3.3 per cent at $US35.40.

Gold investors took heart as the euro hit a 2-1/2 month high against the US dollar and after better-than-expected German data eased concerns about the euro zone's economic outlook.
 

Gold Rises for Fourth Straight Day

Industry News 08:57:18AM Feb 24, 2012 Source:SMM

Gold rose to a three-month high on Thursday, extending to a fourth straight day of gains, as a US dollar drop and expectations of easy monetary policies underpinned gold's inflation hedge appeal.

Profit taking weighed on platinum price, which eased after touching a five-month peak earlier in the session as a damaging strike in major producer South Africa ground on.

Increase in risk appetite lifted gold along with the euro and US equities after data showed the number of Americans filing new claims for jobless benefits held at the lowest level since the early day of the 2007-2009 recession. Silver also jumped 3 per cen.

Bullion has benefited from expectations for further easing by China and after the US Federal Reserve last month said it would keep rates near zero at least until late 2014. Lingering economic uncertainty after the Greece rescue package also helped.

"Investors continue to think that the wave of easy monetary policies will still be available for gold to take a ride on, as the Greek bailout deal rekindled fears about central banks printing money," said Mark Luschini, chief investment strategist of Janney Montgomery Scott, which manages $US54 billion in assets.

The European Central Bank's long-term refinancing operation also put more liquidity into the system, which boosted gold prices, Luschini said.

Spot gold was up 0.2 per cent at $US1780.06 an ounce in late New York trade, having earlier risen to a three-month high of $US1787.11.

Bullion's four-day winning streak was its longest since early January.

US COMEX gold futures for April delivery settled up $US15 at $US1786.30 an ounce, with volume about 25 per cent below its 30-day average, preliminary Reuters data showed.

Silver was up 3.3 per cent at $US35.40.

Gold investors took heart as the euro hit a 2-1/2 month high against the US dollar and after better-than-expected German data eased concerns about the euro zone's economic outlook.