Gold rises 1% as dollar weakens after ECB stands pat on policy
By Sumita Layek (Reuters) - Gold jumped 1% on Thursday, as the dollar weakened after the European Central Bank kept its policy unchanged and U.S. jobless claims held at high levels, dimming hopes of a quick economic recovery from the effects of the coronavirus pandemic. Spot gold was up 0.7% to $1,959.93 per ounce at 11:42 a.m
By Sumita Layek
(Reuters) - Gold jumped 1% on Thursday, as the dollar weakened after the European Central Bank kept its policy unchanged and U.S. jobless claims held at high levels, dimming hopes of a quick economic recovery from the effects of the coronavirus pandemic.
Spot gold was up 0.7% to $1,959.93 per ounce at 11:42 a.m. EDT (1542 GMT), after hitting its highest level since Sept. 2 at $1,965.93.
U.S. gold futures were up 0.7% at $1,967.80.
"The ECB didn't really change its policy and so we are seeing the U.S. dollar dropping here. That's positive for gold," said Bart Melek, head of commodity strategies at TD Securities.
The dollar fell 0.3%, making gold less expensive for holders of other currencies, as the euro rose after ECB President Christine Lagarde said while it is keeping a close eye on the exchange rate, it is not a monetary policy tool.
Meanwhile, U.S. weekly jobless claims hovered at high levels last week, suggesting the labor market recovery from the pandemic was stalling.
Melek said the recovery was not happening as quickly as would be liked, adding that "there are concerns about a second wave of virus, commodity markets like oil are indicating that perhaps growth is slowing down and all monetary policy will be easing."
The safe-haven metal has risen more than 29% this year on the back of unparalleled stimulus and near-zero interest rates from the global central banks.
Investors now turn their attention to the U.S. Federal Reserve's policy meeting on Sept. 15-16.
"Gold has maintained the 50-day moving average quite well and unless it falls below the August low ($1,863.67), it will remain supported," said Michael Hewson, chief market analyst at CMC Markets UK.
Elsewhere, silver rose 0.6% to $27.17 per ounce, platinum gained 2.5% to $939.06 and palladium was up 1.6% to $2,308.96.
(Reporting by Sumita Layek and Diptendu Lahiri in Bengaluru; Editing by Paul Simao)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.