Vietnam & World Gold Market News

“Credit markets will be unblocked at some point and this will push up inflation,” Walter de Wet, a London-based analyst at Standard Bank Ltd., said Friday. ECB and BOE action is “bullish for gold” and “pushes more liquidity into the financial system.”

Gold for immediate delivery rose $3.25, or 0.4 percent, to $913.95 an ounce by 9:54 a.m. in London, set for a 3.1 percent gain this week. June futures fell $1 to $914.50 in electronic trading on the New York Mercantile Exchange’s Comex division.

Gains in the metal are being curbed on anticipation the worst of the crisis in the world banking system may have passed.

The Federal Reserve determined 10 banks need to raise a total of $74.6 billion in capital, a finding that Chairman Ben S. Bernanke said should reassure investors about the soundness of the financial system.

A government report later Friday will probably show US employers cut fewer jobs in April as signs emerged that the worst of the US recession had passed, according to a Bloomberg survey of economists.

“The much dreaded US bank stress tests turned out to be a ‘no mover’ and if Friday’s non-farm payrolls too come in line with market expectations, gold could suffer a setback,” Pradeep Unni, an analyst at Richcomm Global Services DMCC in Dubai, wrote in a research report Friday.

Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, was unchanged at 1,104.09 metric tons Thursday. The fund last attracted new flows on April 9.