Yellow metal rises despite a rally in US dollar
Bullion prices ended the U.S. day session with moderate gains on Thursday, 05 June 2014. Bullishly construed remarks from European Central Bank president Mario Draghi are credited with most of the gold market's bounce. The yellow metal on Thursday morning showed a surprising rally in the face of a stronger U.S. dollar index and a slumping Euro currency. Gold held its moderate gains into the afternoon as the greenback reversed and headed lower, while the Euro currency rebounded to trade near steady.
Gold for August delivery jumped $9, or 0.7%, to settle at $1,253.30 an ounce on the Comex division of the New York Mercantile Exchange.
July silver rose 29 cents, or 1.6%, to end at $19.08 an ounce.
As expected, the ECB announced fresh monetary policy stimulus measures, including lowering the ECB refinancing rate by 10 basis points as well reducing the deposit rate to minus 0.1%. Worries about stagnant European Union economic growth and deflationary price pressures forced the hand of the central bank.
At his press conference following the monthly monetary policy meeting, Draghi sounded dovish remarks on ECB monetary policy moving forward. The ECB meeting results Thursday will be quickly digested by the market place as it turns its attention to Friday's U.S. employment report for May. The key non-farm payrolls figure in the report is forecast to rise by 210,000. However, Wednesday's ADP national employment report showed a jobs gain figure below 200,000, which could be a clue Friday's jobs report from the Labor Department will be a miss to the downside on the non-farms number.
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