Gold at its highest level in 4 months

The dollar fell 1.2 percent against the yen after the central bank cut its purchases of long-term government bonds earlier this week, putting the US currency on course for the biggest two-day decline in nearly eight months.

The Japanese central bank's action has led to a rise in yield on bonds around the world, which is generally a negative factor for gold, as the cost of lost opportunity increases for holders of a yellow metal that does not generate a return, but the decline of the dollar exceeded that factor.

By 07:08 GMT the spot price of gold was up 0.9 percent at $ 1324.40 an ounce, having earlier touched its highest since September 15 at $ 1326.56 an ounce.

US gold futures for February delivery rose $ 11.50 an ounce to $ 1325.20 an ounce