Excon Fuji Securities saw gold futures climbed
to its highest level since August 2014, as investors acted on the latest
monetary policy announcements from the U.S. Federal Reserve Bank and Bank of
Japan.
The Federal Reserve
Bank announced on Wednesday that it still plans to hike rates twice this year,
but stated that slower economic growth may drag back this pace in the years
ahead. These statements raised the commodity price, which is highly sensitive
to rates' changes.
Meanwhile, gold
priced in Sterling jumped up 2 percent to a 36-month high of 931.27 pounds an
ounce, while Euro-denominated gold touched the 1,176.22 euros level, which is
its highest level since April 2013.
Gold momentum
accelerated after the Bank of Japan held off from expanding monetary stimulus,
pushing up the yen more than 2 percent against its U.S counterpart.
Previously, USD was
up by approximately 1 percent against the euro, while European shares reached a
four-month low and oil prices ticked a sixth session of losses.
Economists'
predictions that the US central bank may raise interest rates over the summer
faded earlier this month after US payrolls data disappointed investors.
Gold prices usually
rise as USD losing ground, as it makes the dollar-priced yellow metal an
attractive cheap alternative asset for holders of other currencies.
Gold for August
delivery on the Comex division of the New York Mercantile Exchange gained
$25.20 or 1.96% and bounced to $1,313.50.
On the other hand,
platinum futures dropped 0.3 percent to $972.20; silver futures lost 0.22
percent to $17.47 an ounce, and palladium futures gained 0.37 percent to trade
at $534.50.
