Conjecture about the central banks of the U.S. and Europe being set to deploy economy-spurring measures benefited gold futures on Tuesday, Bloomberg reports.
Bullion barreled beyond the threshold value of $1,700 per troy ounce during the first day of trading in September after August advances achieved 4.5 percent.
"For a sustained rally past $1,700, you do need to see definite action from the ECB and a substantially lower dollar," analyst Andrey Kryuchenkov with VTB Capital told Reuters. "The fact that the other precious metals are rallying as well and it's not just gold, shows it is macro sentiment that is driving the market at the moment … All that promise needs to turn into concrete action. And for gold in the long run, it needs any sort of liquidity boost, of balance sheet expansion and for (bond) yields to stay low."
At 10:59 a.m. on Tuesday, gold futures gained 0.39 percent, a $6.60 rise to $1,694.20 per troy ounce.
Reuters reports the European Central Bank is scheduled to conduct a policy meeting on Thursday, when it is likely to announce aggressive plans to challenge the damaging tendencies of the sovereign debt crisis.
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