MTS Help Center

Gold-related equities rallied on Friday. Newcrest Mining Ltd., Australia’s biggest gold producer, closed3.3 percent higher in Sydney, while Zijin Mining Group Co. surged as much as 7.4 percent in Hong Kong.

The euro was little changed at $1.1162 against the dollar after surging 1.6 percent on Thursday. The common currency has risen 1.4 percent this week, the most since a 3 percent advance in the period ended Feb. 5.

Gold advanced to the highest level in a year after the European Central Bank indicated it wouldn’t cut interest rates further, boosting the euro and making dollar-denominated bullion less expensive for investors.

Bullion for immediate delivery rose as much as 1 percent to $1,284.64 an ounce, the highest since February 2015, according to Bloomberg generic pricing. The metal, which is up 0.8 percent this week, traded at $1,269.10 by 3:19 p.m. in Singapore.

The euro could have its best week in more than a month against the dollar after ECB President Mario Draghi said more rate reductions probably won’t be needed after policy makers cut the benchmark rate to zero. Draghi also said the recovery in the euro area continues to face hurdles including subdued demand in emerging economies and volatile financial markets. These factors have spurred investors to seek shelter in haven assets and powered gold’s 20 percent surge this year.

“Gold rallied after Draghi’s comment of ‘no need for further interest rate cuts’,” Australia & New Zealand Banking Group Ltd. wrote in a note Friday. “The recent change in policy stance will support financial buying in gold.”

Gold Holdings

Investors resumed building holdings in exchange-traded funds backed by gold, with assets rising 7.8 metric tons on Thursday after climbing 4.1 tons the day before. The total stood at 1,735.9 tons, the highest since July 2014, according to data compiled by Bloomberg.

“Draghi’s comments boosted the euro against the dollar, and prices of precious metals rose,” Maike Futures Co. said in a note. “As the outlook for U.S. rates strengthens after the second quarter, the dollar will have a more solid foundation over the euro,” which will gradually weaken gold’s momentum, according to the broker.

Reference : Bloomberg