Gold rises on economic stimulus expectations
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E-mail Xinhua, July 4, 2012
Gold futures on the COMEX division of the New York Mercantile Exchange rebounded on Tuesday to settle at a 2-week high, as traders hoped for more economic stimulus around the world.
The most active gold contract for August rose 24.1 dollars, or 1.51 percent, to settle at 1,621.8 dollars per ounce.
Market analysts said many investors are of the idea that the European Central Bank (ECB) will lower interest rates at its meeting Thursday, and that central banks of other countries could likewise decide to stimulate their economies through quantitative easing measures.
Extra-loose monetary policy is a positive for gold, as the precious metal takes strength on fears of inflation. Traders sought to position themselves ahead of the ECB meeting, as the U.S. markets will be closed Wednesday for the Independence Day holiday.
Silver for September delivery sharply rose 78.1 cents, or 2.75 percent, to close at 28.256 dollars per ounce. Platinum for October delivery hiked 33.1 dollars, or 2.27 percent, to close at 1,491.4 dollars per ounce.
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