By Luzi-Ann Javier and Eddie Van Der Walt
Central bankers just keep giving gold investors good news. This time, it’s Mark Carney’s turn.
The Bank of England Governor unleashed a package of stimulus, including the central bank’s first interest-rate cut in seven years, sending gold prices close to a three-week high. The stimulus, meant to contain the fallout from the U.K.’s vote to exit European Union, came as the BOE cut the nation’s growth forecast.
Bullion has rallied 29 percent this year as the U.S. Federal Reserve held back on tightening and other central banks pledged to do more to boost growth following the U.K.’s vote. As easy money prevails, traders will turn their attention on Friday to the non-farm payrolls data from the U.S. government for clues on the timing for the next Fed rate increase. Low rates are a boon to precious metals because they don’t offer yields or dividends.
Gold futures for December delivery rose 0.3 percent to $1,369.40 an ounce at 11:30 a.m. on the Comex in New York, after touching $1,371.40. On Aug. 2, prices rallied to $1,374.20, the highest since July 11.