Investing.com - Gold prices rebounded from sharp losses in North American trade on Thursday, battling back along with the euro after European Central Bank President Mario Draghi said interest rates aren’t likely to be cut again after delivering a stronger-than-expected package of stimulus measures.
Gold for April delivery on the Comex division of the New York Mercantile Exchange jumped $11.60, or 0.92%, to $1,269.00 a troy ounce by 15:15GMT, or 10:15AM ET, after falling by as much as 1.3% to a session low of $1,237.50 immediately after the ECB’s decision.
EUR/USD was last up 0.66% at 1.1069 after dropping as low as 1.0823 earlier. The euro initially weakened sharply after the ECB cut interest rates across the euro zone to new record lows and boosted its quantitative easing program. The central bank also announced new series of four targeted longer-term refinancing operations to be launched in June.
But the single currency rebounded after ECB president Mario Draghi said in his post-meeting press conference that he did not anticipate the need to reduce rates further.
The dollar index, which measures the greenback's strength against a basket of other major currencies, fell 0.65% to 96.56 after rallying more than 1% earlier.