The US dollar fell today, lifting demand for gold, which is seen as an alternative investment to the safe-haven greenback.
The American currency was under pressure from speculation that the Federal Reserve is considering launching another round of quantitative easing to bolster the recovery after last week’s non-farm payrolls data revealed that the economy added only 69,000 jobs last month.
In the meantime, the European Central Bank (ECB) today left its interest rates unchanged at one percent.
However, but ECB president Mario Draghi said downside risks to the euro zone had increased and the bank was prepared to take action to support the European economy, lifting demand for riskier assets including equities and commodities.
Gold traded at US$1,638/oz, up US$21 from yesterday’s close. Other precious metals were headed in the same direction as gold with silver rallying US$1.24 to US$29.77/oz and platinum tacking on US$28 to reach US$1,462/oz.
Today’s top risers in the sector were:
Kirkland Lake Gold (LON:KGI), up 23 percent at 865 pence at midday
African Barrick Gold (LON:ABG), up 15 percent at 402.3 pence
Medusa Mining (LON:MML), up 13.5 percent at 375 pence
Petropavlovsk (LON:POG), up 10.5 percent at 428.6 pence
Centamin (LON:CEY), up 9.5 percent at 71.45 pence
The top fallers were:
Greatland Gold (LON:GGP), down 22 percent at 0.8 pence at midday
Oxus Gold (LON:OXS), down 10.5 percent at 2.15 pence
ECR Minerals (LON:ECR), down 8.5 percent at 0.431 pence
