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Gold holds steady at 13-month peak

Published 03/11/2016, 03:13 AM
© Reuters. Gold continues to trade at 13-month highs after Draghi remarks
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Investing.com - Gold held steady at a 13-month high in European morning hours on Friday, as increased safe-haven demand following the announcement of fresh stimulus measures by the European Central Bank continued to support the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were little changed at $1,272.10.

The April contract ended Thursday's session 1.22% higher at $1,272.80 an ounce.

Futures were likely to find support at $1,237.50, Thursday’s low and resistance at $1,284.70.

The ECB cut interest rates across the euro zone to new record lows and boosted its quantitative easing program on Thursday.

The ECB wrong footed markets by cutting its benchmark interest rate to a record-low of zero from 0.05%. Market watchers had been expecting no change.

The central bank also cut the deposit facility rate deeper into negative territory, to minus 0.4% and cut the marginal lending rate cut to 0.25% from 0.30%.

In addition, the ECB boosted its quantitative easing program by €20 billion per month to €80 billion, starting in April.

However Draghi added that the ECB did not anticipate that it will be necessary to reduce interest rates further, but added that this could change.

Elsewhere in metals trading, silver futures for March delivery jumped 1.99% to $15.660 a troy ounce, while copper futures for May delivery gained 0.76% to $2.242 a pound.

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