Gold Rebounds After Draghi Signals Rate Cut Is Possible

Gold rebounded from a four-week low after European Central Bank President Mario Draghi left the door open for further interest-rate cuts to bolster the economy, enhancing the metal’s appeal as an alternative investment.

Weakness will persist into next year, Draghi said today at a press conference after policy makers kept the benchmark rate at a record low of 0.75 percent. The ECB forecasts the economy will shrink 0.5 percent this year, more than the 0.4 percent contraction predicted in September. Gold fell 1.6 percent in the past two days.