Gold prices are on a tear
London (Nov 23) Gold prices climbed to a three-week high on Friday, after China trimmed benchmark interest rates to boost economic growth, raising demand for precious metals as a store of value, and as investors assessed dovish comments from European Central Bank President Mario Draghi.
Gold for December delivery finished at US$1,197.70 an ounce, gaining 0.6% for the day. December gold advanced 1% for the week.
China’s rate reduction was the first since July 2012 as the Asian nation heads toward its slowest full-year expansion in almost a quarter century.
The People’s Bank of China cut its one-year benchmark lending rate by 0.4 percentage point to 5.6%, while the deposit rate fell 0.25% point to 2.75%, effective from tomorrow.
In Frankfurt, Draghi strengthened his stimulus pledge for the euro area by saying the European Central Bank can’t hold back in its fight to revive the economy.
In other metals, December silver jumped 1.6% to end at US$16.40 an ounce, advancing 0.2% for the week.
January platinum jumped 1.8% to finish at US$1,227.30 an ounce, while December palladium surged 3.6% to settle at US$794.90 an ounce.