Gold Shoots to $ 1,350 As Weak Dollar Adds Support

Eye on Equities  |  2014-03-07 02:51:16   |   By

Gold on Thursday was found to mount higher to reach $ 1,350, thereby regaining its highest elevation in more than four months.

SAN FRANCISCO (Scrap Monster) : Gold on Thursday was found to mount higher to reach $ 1,350, thereby regaining its highest elevation in more than four months. While the weak dollar added benefit to Gold, gold investors were seen looking out for any news from Fed Reserve’s next move regarding their monetary policy. The next move of Fed Reserve is being focused ahead of the releasing of US monthly jobs report to come out on Friday. The comments of ECB’s Mario Draghi on the decision of ECB to stick on interest rates have also triggered gold investors.

Meantime, April Delivery Gold was found to settle at $ 11.50 or 0.9 % to reach $ 1,351.80 ounce on the Comex division of the New York Mercantile Exchange. Gold showed modest climb on Wednesday. However, Thursday’s climb was reported as the highest since Oct. 28. Silver for May Delivery also increased by 1.4 %, reaching $ 21.57 an ounce. ECB’s Mario Draghi had recently commented that the acomodative monetary policy of the bank is finding its way through the economy finally.

Draghi rejected any threat of deflation, thereby declining chance for further short-term easing. This in turn helped in boosting in the Euro which rallied to the highest since December last year. According to him, in spite of the recovery if US economy, the US currency dropped as the weekly unemployment also fell to its lowest since November last year. The poor dollar was found to benefit gold and silver.