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Gold jumped to its strongest in more than a month on Thursday

Gold jumped to its strongest in more than a month on Thursday after a promise by the U.S. Federal Reserve to keep rock-bottom rates for at least two more years helped burnish the metal’s safe-haven appeal.

FUNDAMENTALS

* Spot gold was hardly changed at $1,709.19 an ounce by 0036 GMT after earlier hitting a high of $1,713.59 an ounce, its highest since mid-December. The metal posted its biggest one-day gain in four months on Wednesday.

* U.S. gold rose 0.56 percent to $1,709.6 an ounce.

* Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank was ready to offer the economy additional stimulus after it announced it was likely to keep interest rates near zero until at least late 2014.

* Gold contracts on the Tokyo Commodity Exchange also jumped. The Most active December contract posted its biggest one-day gain since last October, hitting a high of 4,295 yen a gram.

MARKET NEWS

* The dollar steadied in early Asian trade on Thursday, giving back some of its gains against the yen but paring losses against other rivals after a more-dovish-than-expected outcome to the Federal Reserve’s latest meeting pressured it overnight.

* Japan’s Nikkei average dipped in early trade on Thursday, retreating from a three-month closing high marked the previous session, with industrial robot maker Fanuc  down after its earnings results. .T

* U.S. crude futures rose in early Asian trade on Thursday, extending gains after the U.S. Federal Reserve said it aimed to keep interest rates low for much longer than previously planned to help speed economic recovery in the country. – Reuters

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Posted by on Jan 26 2012. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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