Gold prices gain in Asia on continued easy global monetary policies

Gold up in Asia

Investing.com – Gold prices rose in Asia on Friday as investors looked ahead to continued easy global monetary policies.

On the Comex division of the New York Mercantile Exchange, gold for December delivery rose 0.24% to $ 1,168.80 a troy ounce.

Silver for December delivery gained 0.37% to $ 15.895 a troy ounce.

for December delivery inched up 0.05% to $ 2.384 a pound.

Overnight, cGold futures were relatively flat on Thursday in spite of a surging dollar, after European Central Bank president Mario Draghi rattled global markets with strong hints that the bank is ready to lower interest rates and extend the scope of its comprehensive quantitative easing program.

Speaking at a press conference following the completion of a two-day meeting in Malta, Draghi signaled that the ECB is prepared to cut interest rates in the euro zone from their current record-low of 0.5%. Draghi also implied that the ECB will likely ramp up its EUR 60 billion a month bond buying program, as early as its policy meeting in Frankfurt on Dec. 3.

The stimulus measures may help the ECB ward off risks of a prolonged economic slump in the euro zone, as weak economic growth among emerging market nations spills over into the global economy at large. The ECB launched the €1.1 trillion easing program in March in an effort to stimulate the euro zone’s flagging economy. Large-scale bond buying programs are intended to push interest rates down, as the price of government bonds move higher. Quantitative easing programs are also intended to depress currency values, as it becomes more appealing for domestic investors to invest in the region due to the lower rates.

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Gold prices gain in Asia on continued easy global monetary policies