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Gold near three-week high as central banks stay accommodative
[SINGAPORE] Gold held near a three-week high on prospects that central bank policies will continue to be accommodative, with the European Central Bank embarking on a corporate bond-buying program and investors betting that US rates will stay lower for longer.
Bullion for immediate delivery was little changed at US$1,261.93 an ounce by 9:04 am in Singapore, after rising 1.5 per cent to US$1,262.80 on Wednesday, the highest close since May 17, according to Bloomberg generic pricing.
The ECB plunged into the corporate bond market on Wednesday, buying the debt of some of the continent's biggest companies.
In the US, a weak jobs report has upended bets that the Federal Reserve will hike rates at its meeting next week, with traders pricing in zero chance of an interest-rate increase. The odds of such a move are below 50 per cent until December, according to Fed-fund futures.
Gold has rallied 19 per cent this year as low rates boost the appeal of the metal, which doesn't pay interest, while a sputtering US dollar and concerns over economic growth spur demand for bullion as a store of value.