Gold reversed its earlier losses on Thursday morning in London and climbed to its highest in a week while the dollar fell after the Bank of Japan (BoJ) surprised markets by deciding against easing monetary policy further.
– The spot gold price was last at $1,256.70/1,257.10 per ounce, up $11.90 on Wednesday’s close. Trade has ranged from $1,237.90 to $1,257.50 so far.
– In other central bank developments, he statement from the US FOMC yesterday was much as expected, with interest rates unchanged and no hints as to if it will increase rates in June.
– “The longer the Fed holds off on raising gains, the better for gold,” HSBC analyst James Steel noted. “The bullion market will now focus on the prospects of a Fed hike at the next meeting in June, and the possibility that the Fed will tighten later this year may help cap bullion prices.”
– In the other precious metals, silver was last up 15 cents at $17.350/17.390 per ounce. Platinum at $1,031/1,036 was $11 higher and at a one-week high and palladium at $607/612 was up $2 and also around one-week highs.
(Editing by Mark Shaw)
The post Gold climbs to one-week high, dollar slides after BoJ surprise appeared first on The Bullion Desk.
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Source: Bullion Desk News
