Gold Bar Premiums In Asia Rising Again On Physical Demand
All eyes are glued to the European Central Bank’s monetary policy and interest rate announcement scheduled later today. Gold rose above $1,650 an ounce in Europe on Thursday as the euro climbed against the dollar after a well-received auction of Spanish bonds, but its gains were limited by uncertainty ahead of a European Central Bank interest rate decision later in the day.
Economists polled by Reuters say the ECB will take a breather this month after unleashing back-to-back interest rate cuts, so they can assess the impact of the their actions in the final two months of 2011. The wording post announcement will be closely watched for any suggestion of further monetary easing, however.
Worries that the Eurozone is still stuck in its debt crisis at a time when the US economy is improving has pressured the euro and lifted euro-priced gold. Gold in euro terms has outperformed the yellow metal this year, rising 7.4 percent against dollar gold’s 5.6 percent.