• Gold futures on the COMEX division of the New York Mercantile Exchange rose on Thursday after the Federal Open Market Committee (FOMC) announcement made after the market's close on Wednesday.
• The most active gold contract for March delivery rose 11.1 U.S. dollars, or 0.92 percent, to settle at1,219.40 dollars per ounce.
• Gold prices have risen to an 11-week high at $US1,225.30 an ounce, its highest level since November 17, after the US Federal Reserve gave no clear signal on the likelihood of a March interest rate increase in its latest statement, prompting another drop in the US dollar.
• Expectations for the next U.S. central bank rate hike have changed as of the February Federal Open Market Committee (FOMC) meeting. As a result, investors believe the Fed may raise rates from 0.75 to 1.00during the May FOMC meeting at the earliest. According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 13 percent at the March meeting and 36 percent for the May meeting.
• Gold's gains were further capped as the weekly jobless claims report released by the U.S. Department of Labor on Thursday showed initial jobless claims decreasing by 14,000 to a 246,000 level during the week of January 28th. Analysts note that this report was much stronger than expected and is below the consensus range for this measure.
• "Gold... successfully traded through its resistance at $US1,220," Heraeus trader Alexander Zumpfe said. "If it closes above there, the short-term uptrend is back and a test of $US1,235 might be on the cards.
• "Gold... successfully traded through its resistance at $US1,220," Heraeus trader Alexander Zumpfe said. "If it closes above there, the short-term uptrend is back and a test of $US1,235 might be on the cards, said RBC Capital Markets in a research note.
• "The sharp rebound after a pull down below $US1,200 and the Asian pricing model, despite the Chinese New Year, seem favourable," said Spencer Campbell, general manager with Kaloti Precious Metals in Singapore. "We see a lot of bullish signals."
• Silver for March delivery fell 2.1 cents, or 0.12 percent, to close at 17.429 dollars per ounce.
• US non-farm payroll data for January will be closely watched on Friday. The report is seen as a key barometer of the health of the US economy and will be examined for signs that growth is strong enough to support further interest rate hikes.
Reference: Xinhua, Business News
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