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MTECHTIPS:-Gold surges, as Draghi rattles markets with conflicting easing remarks
Gold closed sharply higher on a volatile day of trading, as European Central Bank president Mario Draghi rattled global markets with conflicting remarks after exceeding market expectations by unveiling a wide range of easing measures on Thursday. On the Comex division of the New York Mercantile Exchange, gold for April delivery traded in a broad range between $1,237.80 and $1,274.20 an ounce before settling at $1,273.80, up 16.40 or 1.32% on the session. At session lows, gold fell to its lowest level in a week before rebounding following Draghi’s comments. With Thursday’s rally, gold halted a brief three-day losing streak. The precious metal remained near 13-month highs hit last week. Gold is still on pace for one of its strongest opening quarters in the last 30 years. Gold likely gained support at $1,063.20, the low from January 4 and was met with resistance at $1,284.70, the high from Feb. 3, 2015. As expected, the European Central Bank’s Governing Council approved a comprehensive set of easing initiatives on Thursday aimed at boosting economic growth throughout the euro zone and staving off deflation. The Governing Council used nearly all of the tools at its disposal to stimulate the economy by lowering three key rates at the meeting and extending the breadth and depth of its comprehensive Quantitative Easing program. As a result, gold slumped to session-lows when the euro plunged more than 1.5% against the dollar and major euro area equity markets surged by at least 2%.
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