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Gold rises 1% as dollar weakens after ECB stands pat on policy

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Gold jumped 1% on Thursday, as the dollar weakened after the Western Central Bank kept their policy unchanged and ALL OF US jobless claims held with high levels, dimming expectation of a quick economic recuperation from the effects of the coronavirus pandemic.

Spot gold had been up 0.7% to be able to $1,959.93 for every ounce at 11:42 a.m. EDT (1542 GMT), after hitting their highest level since September. 2 at $1,965.93.

US gold options contracts were up 0.7% at $1,967.80.

“The ECB didn’t definitely change its policy therefore we are seeing the US dollar dropping here. That’s optimistic for gold,” claimed Bart Melek, head regarding commodity strategies at TD Securities.

The dollar fell into 0.3%, making rare metal less expensive for holders regarding other currencies, as this euro rose after ECB President Christine Lagarde claimed while it is keeping an end eye on the alternate rate, it is not a financial policy tool.

Meanwhile, ALL OF US weekly jobless claims hovered at high levels yesterday, suggesting the labor market recovery from the pandemic had been stalling.

Melek said this recovery was not happening as quickly as would be loved, adding that “there will be concerns about a second samsung s8500 of virus, commodity trading markets like oil are demonstrating the fact that perhaps growth is reducing and all monetary policy will probably be easing.”

The safe-haven metal has risen a lot more than 29% this year on the spine of unparalleled stimulus in addition to near-zero interest rates from the worldwide central banks.

Investors now flip their attention to the US Government Reserve’s policy meeting on Sept. 15-16.

“Gold possesses maintained the 50-day shifting average quite well and unless of course it falls below the July low ($1,863.67), it will remain supported,” said Michael Hewson, primary market analyst at CMC Markets UK.

Elsewhere, silver precious metal rose 0.6% to be able to $27.17 per ounces, platinum gained 2.5% to $939.06 in addition to palladium was up 1.6% to $2,308.96.

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