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Gold closed higher for three days as the dollar weakened after the European Central Bank announced that it would keep its policy unchanged.
Sep 11,2020 10:07CST
Source:Dow Jones
The content below was translated by Tencent automatically for reference.

SMM News: COMEX gold futures prices rose on Thursday, recording a third consecutive trading day higher, as the European Central Bank decided to keep policy unchanged after the strengthening of the euro, putting pressure on the dollar. At the same time, the number of initial jobless claims in the United States remains high, dimming hopes of a rapid recovery of the economy from the impact of the novel coronavirus epidemic.

The most actively traded monthly gold futures of COMEX12 rose 9.40 U.S. dollars, or 0.5 percent, to settle at 1964.30 U.S. dollars an ounce, after rising in the previous two sessions, at 13:30 new York time (01:30 on Sept. 11, Beijing), the most actively traded monthly gold futures rose 9.40 U.S. dollars, or 0.5 percent, to settle at 1964.30 U.S. dollars an ounce.

December silver futures rose 21 cents, or 0.8%, to settle at $27.291 an ounce, up 0.3% from the previous session.

Platinum futures for October rose $16.1, or 0.91%, to settle at $941 an ounce.

December palladium futures rose $12.70, or 0.6%, to settle at $2330.90 an ounce.

In addition, COMEX12 copper for monthly delivery closed down 2.65 cents, or 2.52%, at $2.9985 a pound.

The ECB left its benchmark interest rate unchanged at-0.5 per cent and the refinancing rate at 0 per cent, while reiterating its plan to keep interest rates at current or lower levels until inflation rises to its 2 per cent target.

ECB President Christine Lagarde said at a news conference that the ECB's governing council had "extensively" discussed the recent strengthening of the euro, but reiterated that the ECB did not target exchange rates. Meanwhile, a Bloomberg report said European Council members had agreed not to overreact to a stronger euro.

"the ECB has not really changed its policy, so we are seeing a fall in the dollar, which is good for gold," said BartMelek, head of commodities strategy at TD Securities (TDSecurities).

"the ECB has confirmed that no further additional help is needed," NaeemAslam, chief market analyst at AvaTrade, said in a market update. "for traders, the ECB's confidence in the eurozone economy is a good thing, which is why we are seeing a rise in the euro / dollar."

The euro rose to an one-week high of $1.1917 against the dollar and was last up 0.2% at $1.1825. The euro, which peaked at $1.2014 this year, has risen about 6 per cent so far this year.

In the afternoon, the dollar index fell 0.1 per cent to 93.345 after hitting a four-week high the previous day. A weaker dollar can support dollar-denominated assets, making them cheaper for overseas buyers.

"there is no way to predict short-term trends, but gold investors should be prepared for buying opportunities in the coming weeks, preferably around $1830," said MichaelArmbruster, managing partner of Altavest.

The number of Americans applying for unemployment benefits through state and federal programs for the week ended Sept. 5 was a seasonally adjusted 884000, unchanged from the previous week, the Labor Department said on Thursday. However, in the seven days to August 29, the number of people receiving unemployment benefits increased by a seasonally adjusted 93000 to 13.39 million, the first increase after five consecutive weeks of decline

"various economic data confirm that the US economy is gradually recovering," Aslam said. However, the situation has not improved, which is why we have seen an improvement in gold prices. Gold prices are likely to have hit bottom and are likely to continue to rise. "

The Federal Reserve is scheduled to hold a policy meeting on September 15-16.

Meanwhile, the US Senate has blocked a Republican bill to provide about $300 billion in novel coronavirus aid as Democrats push for more money.

Gold prices have risen 29 per cent this year on the back of record stimulus by global central banks and support from near-zero interest rates.

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