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Commodity News |
HeadLine : |
Gold jumps as emergency Fed rate cut weighs on dollar, equities |
Date : |
Mar 16 2020 |
Gold prices rose nearly 3% on Monday, following a steep decline in the previous session, as the dollar and global equities fell sharply after the U.S. Federal Reserve made another surprise interest rate cut. Spot gold was up 1.4% at $1,550.26 per ounce, having risen as much as 2.8% earlier. The metal fell 3% on Friday. U.S. gold futures rose 2.4% to $1,553.30 per ounce. Stock markets and the dollar fell heavily, after emergency rate cuts in the United States and New Zealand failed to allay fears about the coronavirus’ economic shock. New Zealand’s central bank slashed interest rates by 75 basis points to a record low following an emergency meeting as it prepared for a “significant” hit to the economy from the virus. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. The benchmark U.S. 10-year Treasury yields fell, resuming its march towards an all-time low touched last week. European Union finance ministers plan to agree on Monday on a coordinated economic response to the epidemic, with the European Commission forecasting the effects of the virus could push the EU into a recession.
Source : Reuters
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