Gold returns to $1,090 as US Dollar eases against euro after Obama's State of the Union speech

Gold prices were slightly higher today as the US Dollar eased from five month highs against the euro after the Federal Reserve left the interest rates at near zero and Barack Obama offered an upbeat outlook for the US economy in his State of the Union speech yesterday. Obama laid out his plan to revive the economy and eased his stance on the banks a few days after his pledge to curb risk taking in the banking sector pushed down global stock markets.
The Fed’s decision on interest rates further boosts the attractiveness of gold, which is seen as an investment alternative to the American currency and a hedge against inflation. Gold was pushed down by a string of updates from China over the past few weeks, which has made a few moves to tighten its monetary policy to prevent the economy from overheating, which included raising reserve requirements for some of the country’s largest banks and placing restrictions on lending.
The yellow metal returned to US$1,090/oz after dropping to US$1,085/oz, while silver and platinum reached US$16.62/oz and US$1,516/oz respectively.
Miners mostly rose today. Silver and gold miner Fresnillo (LSE: FRES) led the sector in the FTSE 100 with a 2.4% advance, while platinum miner Lonmin (LSE: LMI) followed with a 1.7% gain and gold producer Randgold Resources (LSE: RRS) posted a marginal gain.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) was flat.
Midcaps were mixed as while Aquarius Plaitnum (LSE: AQP) advanced 3.2% and silver producer Hochschild Mining (LSE: HOC) added less than 1%, gold miner Petropavlovsk (LSE: POG) slipped into the red, posting a loss of less than 1%.
Argentina focused gold explorer Patagonia Gold (AIM: PGD) led the juniors with a 5% gain, while South American based explorer Mariana Resources (AIM: MARL) followed with a 3% climb.
Turkey and Ethiopia operating gold miner Stratex International (AIM: STI) and commodity asset development company Mercator Gold (AIM: MCR) moved in the opposite direction, shedding 9% and 5% respectively. Western Australia operating Norseman Gold (AIM: NGL), Africa focused gold miner Pan African Resources (AIM: PAF) and South Africa focused emerging platinum producer Platmin (AIM: PPN) all declined 3%.  http://www.proactiveinvestors.co.uk/companies/news/12727/gold-returns-to-1090-as-us-dollar-eases-against-euro-after-obamas-state-of-the-union-speech-12727.html