Prices register weekly gain also
Bullion prices climbed on Friday, 21 November 2014 at Comex reacting to dovish comments from European Central Bank President Mario Draghi and a surprise rate cut from China's central bank.
Gold for December delivery settled at $1,197.70 an ounce, gaining $12.10 or 0.6% for the day. The contract traded above the $1,200 level that some traders watch closely, but wasn't able to settle above that mark. December gold advanced 1% for the week.
December silver jumped 26 cents, or 1.6%, to settle at $16.40 an ounce, advancing 0.2% for the week.
On Thursday, gold prices made it back-to-back losses amid the continued pressure from news that a proposal requiring the Swiss central bank to ramp up its holdings in bullion is losing support. Concerns over when the Fed will raise rates also dogged gold prices.
On Friday, the People's Bank of China announced its first rate cut in two years, lowering its deposit rate 25 basis points to 2.75% and trimming its one-year lending rate 40 basis points to 5.60%. The news boosted U.S. futures and European equities, while comments made by European Central Bank President Mario Draghi also contributed to increased risk tolerance. Mr. Draghi served up another reminder that low eurozone inflation has become increasingly challenging and the central bank is ready to act fast if current trends continue. The euro responded by returning near its early November low, while the resulting greenback strength sent the Dollar Index to a fresh four-year high.
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