Gold climbed above $1,300 an ounce as the dollar retreated after investors weighed comments by China’s Premier Li Keqiang on monetary policy and the Bank of Japan’s downgrade of its economic outlook.
Spot gold as much as +0.6% to $1,303.88/oz, before trading at $1,303.32 at 7:45am in London. Metal +0.4% this week; heads for 2nd weekly gain. Gold for June delivery -0.1% to 284.90 yuan/gram on Shanghai Futures Exchange. Bloomberg Dollar Spot Index -0.1% to extend weekly drop to 0.6%
China will stick to its current targeted economic support strategy and resist the temptation to engage in large-scale stimulus like quantitative easing or a massive expansion in public spending, Li said at the close of the annual National People’s Congress session in Beijing. He also announced that a cut in value-added tax will take effect April 1.
Source : Bloomberg