Gold Jumps on Thursday over Expected Increase in Interest Rates by ECB

Gold futures jumped on Thursday over the expectations of interest rate hike by European Central Bank. It is expected that ECB will increase its interest rate from 1.25 percent as ECB President Trichet supported a strong stance to tackle rising inflation. Investors are now hoping that interest rates will increase by the next meeting of ECB

Gold futures contract for August delivery gained 0.3 percent or $4 to $1,54.70 per ounce on Comex trading session of New York Mercantile Exchange. Surging inflation is also regarded as one of the major reasons of gold appreciation.

Silver futures contract for July delivery jumped 2.2 percent or $0.80 to $37.42 per ounce. Analysts from Commerzbank commented, “The World Silver Institute has stressed the growing importance of silver demand for industrial purposes,” they further added, “Given its wide range of industrial uses, we believe the price of silver will be well supported in the medium to long term.”

Among other metals palladium futures contract for September delivery which was the most active soared 1.5 percent or $12.40 to $818.10 per ounce while platinum futures contract for July delivery gained 0.7 percent or $13.50 to $1,844.70 per ounce.

Copper futures contract for July delivery also declined 0.02 percent to $4.1705 on Thursday.

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