yellow metal

Spot gold traded sharply higher testing fresh 6 month highs of $1787.60 as the buying has been spurred on by the monetary stimulus from Central banks.

With a lack of fresh new U.S data released traders continued to ride the monetary stimulus train as four major central banks, the European Central Bank, the US Federal Reserve, the People's Bank of China and the Bank of Japan all announce stimulus measures in the past few weeks. This could have inflationary implications, which would benefit gold because it acts as an inflation hedge.

A choppy sideways day for precious metals as spot gold regained a portion of yesterday’s losses. The yellow metal traded to $1648, before slipping lower.

Spot gold rallied on the heels of disappointing jobs data released this morning. The yellow metal finally broke the $1671 level to touch $1678.