Gold News & Info

Source: Marketwatch

San Francisco— Gold futures on Wednesday rose to their highest level in two weeks, notching a third session of gains as investors cheered the concerted move by the world�s key central banks to slash borrowing costs and help the financial system with liquidity. Gold for December delivery added $32.10, or 1.9%, to trade at $1,745.50 an ounce on the Comex division of the New York Mercantile Exchange. That was gold�s highest settlement since Nov. 16. Gold has gained 1.2% in November. Other metals also closed sharply higher. Central banks in Europe and in Japan, Switzerland, Canada, the U.K., and the U.S. announced Wednesday a coordinated action to boost liquidity for banks as European institutions have shown signs of growing duress.

Gold has tended to trade in line with stocks and commodities in recent months, while its safe haven appeal has diminished as investors have fled to U.S. bonds and the dollar as the debt crisis in Europe worsened. �Central bankers know as well as investors that the rising dollar has been horrible for stocks. Gold�s jump today is just a byproduct of their latest deflation-fighting,� said Adrian Ash, head of research at BullionVault.com. The central bankers agreed to lower the pricing on existing temporary U.S. dollar liquidity swap arrangements by 50 basis points, or 0.50%, putting the new rate as the U.S. dollar overnight index swap rate plus 50 basis points. See full story.