(AXcess News) New York - Gold bullion jumped to a new record high of $1340 after the Bank of Japan cut rates for the first time in two years on Tuesday. Gold stocks reacted, moving higher in mid-morning trading in New York.
Spot gold reached a high of $1,340.80, up 1.74%. In the last 30 days gold has gained 7.5% and compared to year-ago levels, spot gold prices are up 33.8%. Fueling the charge has been global uncertainty towards improving economic conditions with currency issues paralleling growth concerns in the equity markets.
This morning the Bank of Japan's move to cut its lending rate surprised investors worldwide. It was the first time the Bank has cut rates in two years, bolstering the yen against the greenback 0.6%. The dollar index (DXY) stalled, falling 0.68, or 0.87%, to 77.76. As a result, gold and other precious metals moved higher.
The Gold Composite rose 3.43% to 1204.0 as gold stocks renewed their week ago rally.
NM
OGC Price at posting:
$3.86 Sentiment: Buy Disclosure: Held
