Gold rose for a second day after the Federal Reserve continued to signal policy would stay on hold and cited inflation concerns, while the spread of the novel coronavirus boosted demand for havens.
Spot gold +0.2% to $1,580.22/oz at 7am in London after +0.6% on Wednesday; so far in Jan. prices +4.1%, heading for biggest monthly gain since August. Bloomberg Dollar Spot Index steady.
The U.S. central bank kept its key interest rate unchanged Wednesday, while stressing the importance of lifting inflation to officials’ target of 2%. Chairman Jerome Powell’s comments foreshadowed a potential shift toward easier policy. He also said the outbreak of the virus will likely hit the Chinese economy and could spill wider, but it was too early to assess its impact on the U.S
Meanwhile, the World Health Organization called a meeting of its Emergency Committee Thursday to consider issuing a global alarm as the death toll from the spreading coronavirus rose to 170 and the number of cases jumped.
Source : Bloomberg