Gold prices are edging higher Friday morning, lifted by a surprise interest rate cut announcement from the Chinese central bank.
The People’s Bank of China today cut its key lending rate by 0.4 percent to 5.6 percent, to spur economic growth. The deposit rate has been reduced by 0.25 percent to 2.75 percent.
However, strong global equity markets amid expectations of additional stimulus from the European Central Bank kept gold below the $1,200 mark.
Gold futures for December delivery are up $7.90 or 0.66 percent at $1,198.80 an ounce.
On Thursday, gold futures ended down $3.00 or 0.3 percent at $1,190.90 an ounce.
In economic news from the U.S. yesterday, data from the Federal Reserve Bank of Philadelphia showed manufacturing activity in that area to have jumped to its highest level in twenty years in November. Data from Labor Department showed consumer prices were unchanged in October.
Silver for December is up $0.195 or 1.21 percent at $16.332 an ounce. Meanwhile, copper is up $0.039 or 1.30 percent at $3.059 per pound.
The material has been provided by InstaForex Company – www.instaforex.com