Gold tumbled as much as 4.5 percent on Friday, as equity markets continued to be under pressure and investors preferred cash, continuing to sell bullion to meet calls across other markets.
Bullion jumped nearly 3 percent on Monday in the wake of the US Federal Reserve’s slashing its benchmark interest rate by a full percentage point to near zero the day before.
Spot gold surged 1.4 percent to $1,550.26 per ounce by 0030 GMT, rising by some 2.8 percent earlier after its 3 percent drop on Friday.
US gold futures were up 2.4 percent to $1,553.30 per ounce.
Bullion’s current rally followed a steep decline in the previous session, as gold futures had logged some of the worst weekly losses by 13 March, registering a drop of more than 9 percent – the biggest percentage decline since the period ended 23 September 2011, according to FactSet data.
Gold for April delivery GCJ20, 1.971 percent on Comex fell $73.60, or 4.6 percent, to settle at $1,516.70 an ounce.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported its holdings plunged 1.33 percent to 931.59 tonnes on Friday.
Speculators reduced their bullish positions on COMEX gold and silver contracts in the week to 10 March, the US Commodity Futures Trading Commission (CFTC) said on Friday.
Palladium fell 3.1 percent to $1,750.50 per ounce, while platinum slipped 0.8 percent to $755.50.
U.S. Federal Reserve Chairman Jerome Powell speaks to reporters after the Federal Reserve cut interest rates in an emergency move
News of gold’s surge comes on the back of Sunday’s move by the US Federal Reserve to cut its benchmark interest rate to a range of 0 to 0.25 percent amidst efforts to tackle the economic fallout generated by the spread of the coronavirus.
The Federal Reserve also resumed bond buying and echoed action by other central banks to ensure liquidity in dollar lending, as markets brace themselves for another anticipated volatile week.
US President Donald Trump, who had reportedly been pushing the Fed to boost markets amidst the spreading coronavirus and ward off a possible recession, applauded the decision.
Empty street is seen near Lincoln tunnel in Manhattan borough following the outbreak of coronavirus disease (COVID-19)
Sourse: sputniknews.com
0.00 (0%) 0 votes
