Gold Jumps More Than A Percent As ECB Cuts Deposit Rates

Gold Jumps More Than A Percent As ECB Cuts Deposit Rates

Sep 12, 2019 12:09 IST capital market

Gold jumped today, extending a bounce from one month low on ideas that the global central banking action would lift the metal futher. The commodity jumped 1.30% to trade at $1523 per ounce. European Central Bank has announced a new stimulus package, in an attempt to boost growth in the eurozone. The bank cut its deposit rate, charged on commercial bank deposits at the ECB, by 10 basis points to a new all-time low of minus -0.5%. The ECBs governing council has also decided to leave its benchmark interest rate at zero percent. The ECB is also restarting its quantitative easing programme, and will start buying Euro 20 billion of bonds each month from the start of November. MCX Gold futures are also up 0.38% at Rs 38120 per 10 grams. The gains were limited for local Gold as Indian Rupee marked excellent gains as a slide in global crude oil prices supported the local currency. INR closed at 71.14, up 52 basis points on the day against US dollar. INR tested a high of 71 per US dollar in intraday moves.

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