Gold prices rose to a one-year peak on Thursday after the dollar tumbled on the back of weak US jobs data and an unchanged growth and inflation outlook from the European Central Bank. The dollar index, which measures the greenback against a basket of six major rivals, fell as much as 1.1 percent to its lowest since January 2015 of 91.405.
Spot gold climbed to an intraday peak of $1,349.49 an ounce, the strongest since September 7 2016, before paring gains to $1,348.26 by 4:18 pm EDT (2018 GMT), a rise of 1.1 percent. It eased 0.3 percent in the previous session. US gold futures for December delivery settled at $1,350.30.
The number of Americans filing for unemployment benefits jumped to its highest in more than two years last week amid a surge in applications in hurricane-ravaged Texas, sending the dollar lower. Also pressuring the dollar on Thursday was a resurgent euro, which was set for its biggest 1-day gain against the dollar since August 25 after the European Central Bank broadly stuck to its outlook for growth and inflation.
"ECB President Draghi's comments bruised the already wobbly dollar which propelled gold to fresh highs of the current rally," said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York. Silver rose 1.5 percent to $18.104 an ounce, while platinum rose 1.3 percent to $1,016.10 an ounce. Palladium added 1.65 percent to $955 an ounce.
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