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Gold Up 1.5 Percent, Silver Gains 2.1 Percent Following ECB Rate Cut

Gold and silver gained in the trading session on Thursday on news the European Central Bank has cut interest rates for the first time in 10 months to a record low of 0.5 percent, a move seen as bullish for commodities.

David Beahm, executive vice president at precious metal investment firm Blanchard & Co., said the more quantitative easing, the weaker the dollar becomes and gold will benefit from these economic policies.

U.S. gold futures for June delivery gained $21.40 or 1.5 percent to $1,467.60 per troy ounce after a fall of $25.90 or 1.8 percent on Wednesday. By midday trade on Monday, U.S. gold futures for June delivery were balanced at $3.30 or 0.23 percent to $1,467.50 per troy ounce. The spot price of gold drifted, but remained steady, with a drop of $2.58 or 0.18 percent to $1,468.17 per troy ounce.

Jim Wyckoff, a senior analyst at Kitco Inc., said gold decided to act more like a raw commodity than a safe-haven asset Thursday, as the raw commodity sector showed good price gains amid an improved investor risk appetite on this given day.

Wyckoff added than an interest rate cut by the European Central Bank Thursday morning added to bullish sentiment in the raw commodity sector.

The U.S. Mint reports gold coins sales rising on increased buying activity. Collectors picked up gold coins, proof sets, and uncirculated sets. The range of U.S> Mint collector products showed 98 notching higher week-over-week sales against the 65 from the previous report.

2013-W Proof American Eagle Gold Coins gained 8,441 unites as a group during the first full week compared with 5,893 in the first five days of availability. The instance of a later week recorded higher sales than the opening is unique, but is a result of the U.S. Mint lowering prices, which it decides and implements once a week.

The top selling products included the 2013 Proof Set with an increase of 21,398 to 289,805, the 2013 America the Beautiful Quarters Uncirculated Set with sales at 13,052, the 2013 Native American (P) $1 Coin Roll with 9,775, and the 2013 Native American (D) $1 Coin Roll with 9,457.

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