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Gold Edges Up After Steep Fall

After falling heavily in the previous session, the price of gold moved higher Thursday morning despite a steady US dollar.

Gold for June delivery, the most actively traded contract, recovered $10.80 to $1,624.90 an ounce. Yesterday, gold dived over 3 percent to settle at a 3-month low after the Fed Reserve meeting minutes revealed no mention of further monetary stimulus. Meanwhile, the dollar made smart gains against a basket of major currencies which also includes the euro.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,286.62 tons.

This morning, the U.S. dollar advanced to a 3-week high versus the euro and the Swiss franc, while gaining to a 2-week high against sterling. The buck continued to tick lower versus the yen.

In economic news from the euro zone, Germany's industrial production declined more than expected in February, data from the Federal Ministry of Economy and Technology showed. Industrial output dropped 1.3 percent in February from a month ago, offsetting January's 1.2 percent growth. Economists had expected a 0.5 percent decrease.

Meanwhile, the Bank of England left its key interest rate unchanged at 0.50 percent, while maintaining its asset purchase program at GBP 325 billion.

Elsewhere, the prices of silver and platinum were moving higher in morning deals.

From the U.S., the Labor Department will release its report on jobless claim for the weekended March 31. Economists expect the claims to edge up to 360,000 from 359,000 in the previous week.

by RTT Staff Writer

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