Gold up on China liquidity boost

A clerk sorts gold jewelry at a shop in Xuchang, Henan province. [Geng Guoqing/For China Daily]

CHICAGO - Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as China took moves to boost liquidity.

The most active gold contract for April delivery rose $4.2, or 0.33 percent, to settle at $1,264.50 per ounce.

Gold rose for the first time in three sessions as China's central bank on Wednesday decided to lower the reserve requirement ratio, the minimum level of reserves banks must hold, by 50 basis points from Feb 5. This sent investors towards gold as a value- holding asset while the market digested the news, analysts said.

Gold got further boost as US employment data came out worse- than-expected. US private sector employment added 213,000 new jobs in January, according to a report by payroll processor ADP released Wednesday, shy of market consensus of 220,000 and also worse than December. Analysts said this gave a rise to gold as investors looked for a safe haven.

Silver for March delivery increased 7.4 cents, or 0.43 percent, to close at $17.395 per ounce. Platinum for April delivery gained $3.7, or 0.30 percent, to close at $1,238.90 per ounce.