Gold remained near the two percent gains achieved overnight as the dollar dropped while equities recovered
Gold bars
SINGAPORE(BullionStreet): Gold remained near the two percent gains achieved overnight as the dollar dropped while equities recovered.
Gold for immediate delivery was seen trading at $ 1746.94 an ounce at
12.30 p.m Singapore time while US golsd for December delivery was at
$1746.02 an ounce on the comex division of Nymex.
Analaysts said gains in equities and the euro prompted buying from
speculators after major central banks took coordinated action to prevent
the euro-zone debt crisis from igniting a global economic meltdown.
Major banks including US Fed, the European Central Bank and the
central banks of Canada, Britain, Japan and Switzerland said they would
lower the cost of existing dollar swap lines by 50 basis points from
December 5, and arrange bilateral swaps to provide liquidity for other
currencies.
On Wednesday, gold settled at a two-week high as investors cheered
the concerted effort by global central banks to help the financial
system with borrowing costs.
Gold for December delivery rose $32.10, or 1.9%, to $1,745.50 an
ounce on the Comex division of the New York Mercantile Exchange, its
best since Nov. 16. Copper rose 5.6%, leading gains among metals
futures.