Euro-priced gold hits highest since April 2013

[LONDON] Gold priced in euros rose more than one per cent to its highest in 21 months after the European Central Bank launched a government bond-buying programme which will pump hundreds of billions of new money into a sagging eurozone economy.

That knocked the euro sharply lower. The single currency sank by a cent against the dollar to US$1.1511, still above last week's 11-year lows of less than US$1.15.

Euro-priced gold hit a session high at 1,135.92 euros an ounce in the wake of the announcement, and was at 1,134.27 euros an ounce at 1423 GMT, up 1.9 per cent.

That took its gain for the year to 15.7 per cent, against spot gold's 10 per cent rise.

REUTERS