“Gold was seen gaining in London after reaching a six-month high on speculation central banks’ moves to bolster growth will spur demand for the metal as a protection of wealth.
The Bank of Japan (8301) said it will add 10 trillion yen ($127 billion) to its 45 trillion-yen fund that buys assets including government debt. The Federal Reserve announced Sept. 13 a third round of quantitative easing, European Central Bank President Mario Draghi gave details this month of a plan to buy debts of member states and China approved infrastructure spending plans.
“Gold is given a boost on the back of anything that is a form of quantitative easing,” Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said today by phone. “At some point there’ll be some profit-taking but we’ll continue to trend higher.”
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