Commodity News
HeadLine : Gold rises on Fed measures to combat virus impact
Date : Mar 18 2020
Gold prices rose on Wednesday as the U.S. Federal Reserve’s measures to boost liquidity in the market eased some concerns over disruptions to the global economy and a potential cash crunch due to the coronavirus outbreak. Spot gold rose 0.7% to $1,538.63 per ounce. U.S. gold futures GCv1 gained 0.8% to $1,538 an ounce. The Fed said on Tuesday it would reinstate a funding facility used during the 2008 financial crisis to get credit directly to businesses and households as fears over a liquidity crunch due to the virus have grown in recent days. The Fed’s measures supported the benchmark U.S. 10-year Treasury yield, which is holding close to a two-week high scaled on Tuesday. The Trump administration pursued a $1 trillion stimulus package that could deliver $1,000 checks to Americans within two weeks to buttress an economy hit by the virus. On Tuesday, worldwide coronavirus cases crossed 187,000, while the death toll was over 7,400; there have now been more cases and deaths outside mainland China than inside. U.S. retail sales fell by the most in over a year in February and the epidemic is expected to depress sales in the months ahead, which could strengthen economists’ expectations of a consumer-led recession by the second quarter.

Source : Reuters
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