Gold just got a powerful boost from the Federal Reserve, with bullion extending gains in Asia following the U.S. central bank's emergency, virus-driven rate cut, losses in equity markets and collapse in Treasury yields.
Bullion prospers from low rates, and more easing is expected from the Fed and other central banks as policy makers seek to blunt the economic fallout from the health crisis. Vice President Mike Pence, who’s leading the U.S. government response, said that 13 states now have coronavirus cases.
Gold jumped as much as 0.7% to $1,652.67 an ounce, and traded at $1,646.69 at 8:15 a.m. in Singapore following Tuesday’s 3.2% surge. The Fed's latest move is helping to reinvigorate demand after bullion plunged on Friday, with investors selling the metal to cover losses in other asset classes.
Source : Bloomberg