By Sushma U N and Mark Decambre
Gold futures climbed Thursday following the Bank of England’s decision to cut interest rates for the first time since 2009 and unveil a batch of stimulus measures aimed at stimulating the country’s economy in the wake of the June 23 vote to exit the European Union.
The BOE cut its key lending rate by a quarter of a percentage point to 0.25% and unfurled a mix of measures, including reviving its bond-buying program. Although the rate cut was expected, the additional stimulus measures surprised the market, and providing a jolt to haven assets. Check out: Recap of BOE Gov. Mark Carney’s news conference
December gold GCZ6, +0.26% rose $5.10, or 0.4% to $1,369.70 an ounce, following a downbeat day for the metals complex. The yellow metal rose even as the dollar was climbing, up 0.1%, putting pressure on commodities priced in the currency. A stronger dollar tends to diminish the appeal of assets priced in greenbacks.
Gold futures gathered steam early in the session after the U.S., jobless claims rose to the highesty level since the end of June, though claims are still below historical averages and analysts’ expectations polled by MarketWatch, which suggests a healthy labor market.
The jobless-claims report comes ahead of the closely watched jobs report on Friday, which will be pored over to determine U.S. labor-market conditions. The significance of the nonfarm-payrolls report has been raised after a round of mixed data. A report for June showed that 287,000 jobs had been created, following data that indicated that just 11,000 jobs were created in May.