Comments
Gold on Friday traded near the highest level in almost 11 months on speculation that central-bank stimulus from the US to Europe and Japan will boost demand for the metal as a store of value.
The precious metal increased by 0.3 per cent to $ 1,796.10 an ounce, the highest level since November 14, before trading at $ 1,791.48 as investors’ holdings rose to an all-time high.
The European Central Bank is ready to start buying the bonds of indebted euro nations as soon as the necessary conditions are fulfilled, President Mario Draghi said, after policymakers left the benchmark interest rate at a historic low of 0.75 per cent.
Gold gained 11 per cent in the third quarter, the most since June 2010, as the US Federal Reserve announced a third round of monetary stimulus.
Bullion held in exchange-traded products expanded 11.14 tonnes, or 0.4 per cent, to a record 2,565.472 tonnes.
Some investors buy bullion as a hedge against inflation and a weaker dollar, and the metal generally earns returns only through price gains, increasing its allure as interest rates decline.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.