Prices get a boost from the Chinese central bank's decision
Bullion prices ended the U.S. day session modestly higher on Wednesday, 04 February 2015 at Comex. Prices got a boost from the Chinese central bank's decision to cut the reserve-requirement ratio for banks in an aim to boost growth.
Gold for April delivery added $4.20, or 0.3%, to settle at $1,264.50 an ounce after falling by more than $16 on Tuesday.
March silver rose more than 7 cents, or 0.4%, to end at $17.395 an ounce.
Gold bulls were impressed Wednesday that their metal is posted gains despite outside markets that were in a bearish posturea higher U.S. dollar index and sharply lower crude oil prices.
Traders and investors are now looking ahead to Friday's January U.S. jobs report, which is arguably the most important U.S. economic data point of the month. Forecasts call for the key non-farm payrolls number to be up 237,000 in January.
More From This Section
The January ADP national employment report Wednesday was reported up 213,000. That number was just a bit less than the 225,000 rise expected. However, the December ADP report was revised up. The market place showed little reaction to the data.
In overnight news, China's central bank eased its monetary policy Wednesday by cutting its reserve requirement ratio for its domestic banks. The stimulus move is the latest in a salvo of central banks' easing of their monetary policies, in efforts to boost economic growth. This news is a bullish underlying factor for the raw commodity sector, including precious metals. China is a major raw commodity importer.
The European Union got some upbeat economic news Wednesday when retail sales in the Euro zone rose for the third straight month and at the fastest rate in years. December retail sales were up 2.8%, year-on-year. Retail sales in the EU posted a strong finish to 2014. Also, the data firm Markit reported its composite purchasing managers' index (PMI) for the EU was 52.6 in January from 51.4 in December. A reading above 50.0 suggests growth in the sector. Still, the Euro currency was under modest selling pressure Wednesday.
Powered by Capital Market - Live News