Gold turns higher after BoE easing measures

Gold prices turned higher, erasing early losses, with spot climbing to fresh daily highs, after the Bank of England announced easing monetary steps aimed at offset Brexit impact on UK economy.

The BoE decided to cut the Bank Rate by 25 bps to a record low of 0.25%, for first time since 2009, and expanded its Asset Purchase Facility by £60 billion to £435 billion.

Gold jumped to a high of $1,363 an ounce, turning positive for the day. It was last trading up 0.25% at $1,361 an ounce.

Gold benefitted from BoE move as in an environment of low interest rates investors are less attracted to bonds, increasing the appeal of no-yielding assets, such as precious metals.