Gold rebounded on Wednesday, a day after it posted its biggest one-day decline in nearly four months, as the coronavirus scare triggered safe-haven flows towards bullion and raised hopes of interest rate cuts by major central banks.
Spot gold rose 0.8% to $1,647.89 per ounce by 1053 GMT, having slumped as much as 1.9% in the previous session as investors took profits. U.S. gold futures were steady at $1,650.30.
Investors have pushed up expectations for rate cuts from the U.S. Federal Reserve and European Central Bank. China’s central bank has also vowed it will take further steps to support the virus-hit economy.
Gold is up more than 3% so far this month, having hit a 7-year high of $1,688.66 an ounce earlier this week as the rapidly spreading coronavirus aggravated fears of an economic slowdown.
Source : Reuters