Gold prices rose significantly

Gold prices jumped more than 1 percent on Thursday, which was caused by a significant decline in the dollar against the euro and other major currencies after ECB head Mario Draghi indicated that a further decline in interest rates in the euro zone is unlikely.

Earlier in the session the single currency and precious metals fell on news that the ECB will cut interest rates and expanded the bond purchase program in an attempt to boost economic growth and consumer inflation. Recall, the ECB cut its main refinancing rate to 0% to 0.05% and increased its quantitative easing program to 80 billion. Per month with 60 billion. Euro. Central Bank also cut rates on deposits of up to -0.4% to - 0.3%. Initially, this change led to a sharp drop in the euro, but the currency later recovered to a three-week high against the dollar after Draghi said he did not foresee the need to further reduce interest rates.

"Rates The decrease was seen as a prelude to further stimulation, but the fact that the current policy of negative interest rates reached the extent possible, provide support for the euro, and consequently gold, - said an analyst at Mitsubishi Jonathan Butler -. Attention is now switched to the Fed, which will hold a meeting next week. Now the futures market indicates that the increase in the interest rate the Fed can only take place in September. "

Gold rises in price this year amid expectations that the Fed will refrain from further rate hikes after the first in nearly a decade increase in December. Since the beginning of the year yellow metal rose in price by 20%, and has recently reached its highest level since February 2015.

In focus were also news that the gold reserves in the largest investment fund SPDR Gold Trust resumed an upward trend after a brief hiatus. On Wednesday, stocks increased by 2.1 tons since Tuesday was recorded outflows of 2.4 tons.

Little influenced by the US statistics. The Labor Department said the number of Americans who first applied for unemployment benefits fell more than expected last week, its lowest level since October, pointing to a steady force of the labor market. unemployment initial claims for benefits decreased by 18,000 and reached a seasonally adjusted 259,000 for the week ended March 5. This is the lowest level since mid-October. Applications for the previous week were revised to show 1,000 fewer applications received than previously reported.

April futures price of gold on COMEX today rose to $ 1264.60 per ounce.