Gold prices held steady at 1,458/oz today as safe haven demand eroded after Portugal decided to request a bailout from the EU to calm jitters over Europe’s debt problems, while US jobs data beat expectations.
Portugal is now expected to receive a €75 billion bailout package.
The news pushed the US dollar higher, putting further pressure on the yellow metal, which is seen as an alternative investment to the American currency. However, the European Central bank decided to hike interest rates by 25 basis points to 1.25 percent today, which could boost the euro against the US dollar and give support to gold.
In addition to that, today’s jobless claims update from the Department of Labor showed that the number of initial applications for unemployment benefits fell 10,000 to 382,000 last week.
Gold last traded at US$1,459/oz.
Silver climbed to US$39.52/oz and platinum fell to US$1,782/oz.
Mining stocks weren’t very active today. Fresnillo (LON:FRES) stood just above the opening level, while Randgold Resources (LON:RRS) and Lonmin (LON:LMI) declined marginally.
African Barrick Gold (LON:ABG) posted a small gain.
Oxus Gold (LON:OXS), the only publicly listed gold mining company with primary operations inside the Republic of Uzbekistan, led the small caps, soaring 24.5 percent. Russia operating PGM explorer Eurasia Mining (LON:EUA) added 6 percent.