[size=36]Gold continues its gains with the US central bank cut interest rates due to corona[/size]
Gold prices rose on Wednesday, to continue its gains after it recorded a rise of three percent in the previous session at a time when the Federal Reserve (the US central bank) cut interest rates to hedge the economic impact of the rapidly spreading Corona virus.
And the profit of gold in spot trading 0.1 percent to $ 1641.08 an ounce by 0625 GMT, after recording the largest percentage gain in one day since 2016 on Tuesday. Gold fell in US futures 0.1 percent to 1642.50 dollars an ounce.
The US central bank cut interest rates by 50 basis points on Tuesday in an emergency move to protect the world's largest economy from the impact of the epidemic.
"Momentum last night was still in the Asian session," said Margaret Yangyan, market analyst at CMC. But the rate cut was likely to be largely taken into account. So the bullish trend (for gold) is currently limited. ”
The rate cut was the first move by the US Federal Reserve outside the usual scheduled monetary policy meetings since 2008, when the financial crisis was at its height.
But the emergency move did not calm investor fears, as US stock indices closed almost three percent on Tuesday, while Asian stocks posted volatility on Wednesday.
Lower interest rates reduce the opportunity cost of possessing the non-yielding yellow metal.
For other precious metals, palladium fell 0.4 percent to $ 2490.70 an ounce, while platinum rose 0.7 percent to $ 880.71. Silver rose 0.2 percent to $ 17.22 an ounce.
The World Platinum Investment Council said that the demand of the automotive sector for platinum will rise this year for the first time since 2016, but it will not be sufficient to compensate for a decrease in purchasing for the purpose of investment, which leaves a surplus in the global market again.