Gold Up 2 Percent On Talk Of U.S. And Euro Stimulus

Reuters reported the rise in the price of gold by nearly 2 percent, to $1,609.26 an ounce. Talk of monetary stimulus in the US and Europe increased the metal’s appeal  as a safe hedge, and gold outperformed equities for the third consecutive day.

As quoted in the press release:

Bullion was poised for its biggest daily rise in a month on speculation the European Central Bank will create new money tofund rescue operations for troubled euro zone countries, traders said.

Jeffrey Sherman, commodities portfolio manager at DoubleLine Capital LP, commented:

The gold market has been looking for any hints of any quantitative easing program. You are seeing this big bounce today off the fact that there could be something going on in euroland.

Click here to read the full Reuters report.