Gold futures prices steadied above $ 1,300 a tonne on Friday, near its highest level in five months, after the ECB’s initiated a multi-billion bond-buying programme to revitalize the euro zone economy. Ahead of the third week of gains as traders weighed the outlook for U.S. interest rates
Gold rallied 9.3 percent this year as stagnant economies defied policymakers to find better ways to prop up growth. The ECB president Mario Draghi committed to buy € 60 billion each month until September of next year in an effort to place more cash in traffic and reviving inflation.
The ECB bold stroke also fed to risk appetite, with Asian stock markets lying at a rally in global equities.
100 Mcx Tips Experts says, “Asian stocks together with India are listed on the rise as sentiment in global markets turned bullish after the European Central Bank announced it will buy bonds worth 60 million euros a month to encourage sagging economy.”
US gold February delivery was remained stable at $ 1300.40 an ounce. Silver for immediate delivery fell 0.1 percent to $ 18.3097 an ounce.
Spot gold has climbed nearly 10% so far this year, recovering from a small loss in 2014 was little changed at $1300.24 one ounce, after hitting a session high of $1302.50.
Rupee opened at 61.45 per dollar and touched a high of 61.37. And all major Asian currencies were trading higher against the dollar after ECB expanded stimulus.
Gold futures prices fell, at the Multi Commodity Exchange, for delivery in far-month April by Rs 56, or 0.20%, to Rs 28,109 per 10 gram. Traders offloaded their positions largely with a weak trend overseas amidst fall in demand from jewellers at domestic markets.
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