Gold held on to its gains on Wednesday after the European Central Bank extended just over half a trillion euros in three-year loans to commercial banks to ensure the smooth working of the financial system, in a widely-anticipated operation.
Gold in dollars was up 0.3 percent on the day at $1,790.16 an ounce by 12:33 SA time, below the session high at $1,790.30 hit earlier in the day.
The ECB said it allotted 529.531 billion euros in cheap three-year loans to banks, an amount that had been expected by the financial markets and contributed to the environment of loose monetary policy and abundant liquidity that is usually supportive of gold.
Gold in euros extended gains, rising to 1,330.05 euros an ounce, while silver rose 0.8 percent on the day to $37.23 an ounce. - Reuters