LONDON: Gold climbed above $1,200 an ounce on Friday to hit its highest in three weeks after a surprise rate cut by China fuelled expectations demand could rise in the world’s biggest consumer of the metal.

China cut its benchmark interest rates for the first time in more than two years to lower borrowing costs and lift a cooling economy. Spot gold was up 0.9 per cent at $1,203.84 an ounce at 1501 GMT, while US gold futures for December delivery were up $12.80 an ounce at $1,203.70. Earlier spot gold touched its highest in three weeks at $1,207.70.

Published in Dawn, November 22th , 2014