Gold rose more than one per cent on Wednesday, extending earlier gains as the dollar moved lower and European stocks fell, while investors awaited US jobs data for clues on the Fed’s stimulus tapering.
Spot gold rose 1.2 per cent to $1,255.36 an ounce by 1210 GMT. US gold futures for August delivery were up $11.10 at $1,254.70 an ounce.
Gold posted its biggest ever quarterly loss of almost 23 per cent for the April-June period on concerns the US Federal Reserve would end its $85 billion monthly bond purchases. Yet prices rebounded above $1,200, driven by traders covering short positions this week. Market sentiment remained guarded as outflows from exchange-traded funds continued and physical demand failed to pick up.
