LONDON: Gold jumped 1 per cent on Thursday, rising further from this week’s four-month low, after the European Central Bank cut interest rates to record lows and its chief Mario Draghi unveiled a package of new stimulus measures.

Dealers who had bet against gold in the run-up to the announcement rushed to cover positions as the metal held above $1,240 an ounce, traders said.

Spot gold was up 0.8pc at $1,252.15 an ounce at 1308 GMT, off a high of $1,256.50. It earlier dipped as low as $1,240.90, close to this week’s four-month low of $1,240.61.

US gold futures for August delivery were up 0.7pc at $1,252.50 an ounce.

Among other precious metals, silver gained 1pc to $18.93 an ounce, while platinum was up 0.3pc to $1,435.80 an ounce and palladium rose 0.3pc to $836.22 an ounce.

Published in Dawn, June 6th, 2014