Gold News

The European Central Bank yesterday cut benchmark interest rates to a record 1 percent and unveiled plans to buy 60 billion euros

Gold advances on inflation concerns as investor’s hedge

The European Central Bank yesterday cut benchmark interest rates to a record 1 percent and unveiled plans to buy 60 billion euros

Gold rose in London, heading for a weekly gain, on speculation central-bank measures to revive economies will spur inflation and demand for bullion as a hedge. The European Central Bank yesterday cut benchmark interest rates to a record 1 percent and unveiled plans to buy 60 billion euros ($81 billion) in covered bonds, while the Bank of England said it would increase purchases of debt. “Credit markets will be unblocked at some point and this will push up inflation,” Walter de Wet, a London-based analyst at Standard Bank Ltd., said by phone today. ECB and BOE action is “bullish for gold” and “pushes more liquidity into the financial system.” Gold is trading at $916 as of 11:03am, GMT. Gold’s Pool-Position is 10% Long, meaning that most finotec traders are selling the precious metal.