Gold & Silver

Gold reverses losing streak after coronavirus response

Bloomberg March 18 | Updated on March 18, 2020 Published on March 18, 2020

Gold extended gains into a second day after governments and central banks flagged they’ll take more aggressive action to handle the economic fallout of the coronavirus outbreak.

Spot bullion advanced as much as 1.2% to $1,546.41 and traded at $1,542.68 as of 6:42 a.m. in Singapore, after snapping a run of declines to rise almost 1% on Tuesday. The metal tumbled Friday to the steepest weekly loss since 1983.

Silver also jumped to rise as much as 2.2%, heading for the biggest gain in two weeks. Platinum gained as much as 1.3%.

The rally came as the Federal Reserve signalled it will intervene in short-term credit markets, while the Trump administration is discussing a plan that could amount to as much as $1.2 trillion in spending, including direct payments of $1,000 or more to Americans within two weeks.

Gold responded to the Feds move to launch a financial crisis-era program to support U.S. corporates, Australia & New Zealand Banking Group Ltd. analyst Rahul Khare said in a note.

Published on March 18, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.