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Precious Metals Profit from ECB Stimulus Program

January 22, 2015 at 20:27 by Vladimir Vyun

Gold and other precious metals climbed today after the European Central Bank announced that it is going to expand its asset purchase program. The ECB will increase bond purchases by €60 billion, a bit more than a €50 billion increase that market participants were speculating about. The total value of the program will be at €1.08 trillion, much more that markets were counting on initially.

It was somewhat surprising to see precious metals rallying while the announcement drove the euro down and the dollar up. Usually, metals move inversely to the US currency. Yet the central bank’s decision created need for safety, increasing demand for bullion as a store of value.

February futures for gold climbed 0.66 percent to $1,302.20 per troy ounce as of 20:23 GMT on COMEX today. March silver jumped 1.36 percent to $18.44 per ounce. Spot price for platinum advanced 1.01 percent to $1,285.69 per ounce, while palladium rallied 0.96 percent to $774.80 per ounce.

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