Gold set to extend rally on speculation the ECB will cut Key rates
Gold is trading near a two-week high, and is set gain on speculation that the European Central Bank will cut interest rates to a record low Thursday as policy makers take more action to drive growth and combat the debt crisis.
Immediate-delivery Gold was little changed at 1,614.43 oz at 8:13 a. in Singapore.
Prices climbed 1,625.07 on 3 July, the highest level since 19 June. The Aug delivery contract fell as much as 0.6% to 1,611.60 oz on the Comex in New York, and traded at 1,614.60.
The ECB will probably reduce the benchmark rate 25 basis points to 0.75%, according to the median forecast in a survey of 62 economists.
The Bank of England may raise its target for bond purchases too on Thursday, boosting it GBP50-B (US$78-B) to GBP375-B, another survey is showing.
Expectations are for a cut in the Key EU interest rate, that would be Bullish for Gold. Inflationary pressures are likely to increase on further monetary-policy easing.
The USD Index, a gauge against a 6 currency basket that includes the Euro, rose as much as 0.6%, Gold sometimes trades counter to the Greenback.
Gold holdings in exchange-traded products (ETF) expanded to a record 2,412.42 metric tons on 3 July, holdings have risen yearly since Y 2004.
Spot Silver rose 0.2% to 28.2025 oz before trading little changed at 28.1725.
Platinum for immediate delivery gained as much as 0.3% to 1,483.50 oz, and traded at 1,482.75.
Palladium climbed as much as 0.6% to 599.00 oz and is now at 596.75.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.