LONDON (Commodity Online): Gold surged 1.6% to $1762.65/oz, the highest level this month so far. Silver inched up by 0.7% to $34.46/oz, said Barclays Capital in a research note.
The ECB cut the main policy rate by 25bp on Thursday, down to 1.25% from 1.50%. The move was largely unexpected by the market.
Although some market watchers saw this as a step that could possibly pave the road for recovery, the ECB press conference also released statements that painted a grim picture for the macro economic backdrop in Europe, citing that a significant revision to growth forecasts and projections is very likely to follow.
Nevertheless, concerns over Europe continue to remain supportive for Gold prices in the near term.
Platinum and Palladium both edged higher by 2.2% and 0.6% respectively. North American Palladium, one of the largest palladium producers in the world, released its Q3 production on Thursday. Its palladium production came in at 35koz for Q3, up by 1.31% y/y, bank added.
