MTECHTIPS:-Gold inches up following BOE rate cut, ahead of U.S. jobs report
MTECHTIPS-Gold ticked up on Thursday, remaining near 28-month highs, as investors looked past a highly telegraphed interest rate cut from the Bank of England placing a greater focus on the U.S. monthly job report set to be released at week's end. On the Comex division of the New York Mercantile Exchange, Gold for December delivery traded between $1,355.25 and $1,371.35 an ounce before settling at $1,367.05, up 2.35 or 0.17% on the session. With the slight declines, Gold closed higher for the seventh time over the last eight sessions. Since opening the year near $1,075 an ounce, Gold has soared approximately 29% over the last six months and is on pace for one of its strongest years in a decade. Gold likely gained support at $1,337.50, the low from July 20 and was met with resistance at $1,391.40, the high from March 14, 2014. On Thursday morning, the Bank of England as expected by 25 basis points to a record-low of 0.25%, representing its first interest rate cut in seven years. Notably, the BOE increased its asset purchasing by £60 billion, outlined a plan to begin buying £10 billion of corporate bonds per month and announced an initiative for providing as much as £100 billion to banks under a comprehensive term funding scheme
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Gold gained as the dollar came under pressure from a U.S. payrolls report that flagged up weak wage growth last month as experts recommended. We also provide informative Equity Tips.
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