By Anna Andrianova and Chris Oliver, MarketWatch
NEW YORK (MarketWatch) — Gold prices rose on Tuesday, pushing through the $1,600-an-ounce level, buoyed by expectations that global central banks will take more steps to stimulate economic growth.
Gold for August delivery GCQ2 +1.23% was up $16.50, or 1%, to $1,614.20 an ounce.
The rise erased weakness in the regular U.S. session on Monday, which saw the contract fall $6.50 to close at $1,597.70.
“The mood on the financial markets has generally been bright since the end of last week, and the U.S. dollar has weakened, on top of which gold is reaping the benefit of market expectations for further monetary easing around the globe to stimulate economic growth,” said analysts at Commerzbank in a note.
The European Central Bank is expected to lower rates on Thursday, and China is expected to relax the minimum reserve requirement ratio for banks again. After the weak manufacturing data in the U.S. on Monday, the Federal Reserve may take further actions.
The ICE dollar index DXY +0.18% , which tracks the U.S. currency against its six major rivals, traded at 82.012, up 0.1% from the previous trade and up 2.3% year-to-date.
Elsewhere in the precious-metals complex, silver for September delivery SIU2 +1.91% rose 48 cents, or 1.7%, at $27.96 an ounce.
Anna Andrianova is a MarketWatch reporter, based in New York.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
