Gold rose for a second session on Thursday after China moved to cut banks’ reserve requirement, following other central banks in the world trying to spur growth and fight deflation.
Spot gold was up 0.2 percent at $1,271.96 an ounce by 0026 GMT, adding to a 0.8 percent gain on Wednesday. Gold has historically benefited during periods of easier global monetary policies amid increased liquidity and low interest rates. U.S. gold for April delivery rose 0.6 percent to $1,272.50 an ounce.
China’s central bank made a system-wide cut to banks’ reserve requirement, the first time it has done so in over two years, to unleash a fresh flood of liquidity to fight off economic slowdown and looming deflation.