GOLD WEBCAST – Gold breaks heavy resistance at $1,200 after more PBoC stimulus

Otmane El Rhazi from The Bullion Desk.

The gold price has again broken through heavy resistance at $1,200 after multiple attempts throughout the week, despite the dollar making gains early in the session. Spot gold was last at $1,205.70/1,206.50 per ounce around the time of the US market open, up $13.50 on Thursday’s close and not far off a high of $1,208 struck at 13:13 GMT, its highest in three weeks. The gains follow China’s cuts to its interest rates, with the one-year lending rate now down to 5.6 percent and the deposit rate at 2.75 percent. The central bank also raised the deposit-rate ceiling to 1.2 times the benchmark. The dollar was bolstered early this morning following a dovish speech from ECB president Mario Draghi, who said that “a stronger recovery is unlikely in the coming months,” and that “the inflation situation in the euro area has also become increasingly ch

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