Gold rises on easing dollar after central bank troika data

Gold rises on easing dollar after central bank troika data

Mubasher: Gold prices edged higher on Thursday following a bumpy start earlier in the day, after a two-week high hit in the previous settlement.

This came after the US dollar index retreated earlier gains in the wake of central bank news and US economic data.

By 2:18 pm GMT, gold futures for December deliveries rose 0.22% to $1,213.60 per ounce, while spot gold rose 0.03% to $1,206.63.

Earlier in the day, December gold futures went up 0.2% to $1,212.90 per ounce, ranging between about $1,208 and $1,214 in choppy market.

On Wednesday, the precious metal settled at $1,210.90, the highest since 29 August, according to FactSet.

The Bank of England (BoE) maintained key rate at 0.75%, while pointing to concerns regarding global economic slowdown.

The European Central Bank (ECB) held as well its benchmark rates at their present level, while the Turkish Central Bank (CBRT) raised its one-week repo interest to 24% from 17.75%, after inflation rate hit nearly 15-year high last August.

Outside Europe, a gauge of consumer-level inflation climbed 0.2% in the US, while the weekly American jobless claims hovered near 49-year trough.

In reaction, the US dollar index, which tracks the greenback against a basket of six rivals, dipped 0.2% to 94.58.

However, concerns that trade tension between the US and China could curtail demand for the gold have also weighed on the yellow metal prices, fuelling appetite for the US dollar.

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Source: Mubasher

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