Precious metal futures on the COMEX Division of the New York Mercantile Exchange went up on Thursday on safe-haven buying and Britain's interest rate cut.
Gold prices for April delivery gained 12 U.S. dollars, or 1.3 percent, to 914.20 dollars an ounce. March silver closed at 12.75 dollars per ounce, up 28 cents. April platinum rose 12.30 dollars to 982 dollars per ounce.
The Bank of England Thursday cut its key lending rate by 50 basic points to a record low 1 percent in order to fight the recession. As expected, the European Central Bank kept its key rate unchanged at 2 percent.
Analysts said that as the economic stimulus plans and lower interest rates policies went on, inflation will be inevitable in the long run, which made precious metals more attractive as a risk hedge.
The Labor Department reported Thursday that the number of initial unemployment benefit claims in the U.S. climbed to 626,000,the highest level since 1982, which meant the U.S. labor market is deteriorating further, providing some bullish support to precious metals.
