- Write by:
-
Tuesday, March 24, 2020 - 11:37:17 AM
-
386 Visit
-
Print
Mining News Pro - The gold price surged on Monday after the US Federal Reserve promised to pump “unlimited” amounts of money into the financial system, boosting the metal’s status as a store of wealth and an inflation hedge.
According to Mining News Pro - On the Comex market in New York, gold for delivery in April, the most active contract, closed just off its day high at $1,567.60, up $83.00 an ounce, or 5.6% compared to Friday’s close.
Monday was the biggest one-day dollar gain in the history of gold trading, surpassing the October 25, 2011 advance of more than $70 an ounce that took the price above $1,700. In percentage terms, today’s performance is the best in over a decade.
On Monday, the Fed committed to unlimited purchases of US Treasuries and agency mortgage-backed securities, flooding financial markets with easy money.
“The Federal Reserve is committed to using its full range of tools to support households, businesses, and the US economy overall in this challenging time,” the Fed said in a statement.
“The Fed unveiled its biggest cannon seen to date – even bigger than in the great financial crisis,” Tai Wong, head of base and precious metals derivatives trading at BMO told Reuters:.
“The market reacted instantly with equities and gold soaring behind the Fed’s new ‘Draghi’ approach. However, the acid test here is whether this optimism will hold for more than one day.”
Matthew McLennan, head of the global value team at First Eagle Investment Management, which manages about $101 billion in assets told Bloomberg:
“When the Fed progressively removes liquidity fears, provides forward guidance on rates, and when it possibly even controls the yield curve, and the economic softening is observable across the whole economy, the potential hedge value of gold can reassert itself powerfully.”
Gold has been on a wild ride over the past weeks, dropping as low as $1,450 an ounce a week ago after briefly hitting a seven-year high above $1,700 a week earlier.
Short Link:
https://www.miningnews.ir/En/News/506004
Private credit managers are doing significantly more fossil-fuel deals now than just a few years ago, as they step into ...
Canada’s corporate ethics watchdog on Tuesday said it was likely that human rights abuses had occurred at a mine in ...
Commodities usually rally when central banks cut interest rates, bolstering the case for going long raw materials in the ...
Awalé Resources (TSXV: ARIC) stock soared on Monday after the Newmont-backed gold explorer reported outstanding assay ...
French President Emmanuel Macron said on Monday the government is seeking to designate new regulated gold mining zones ...
Newmont Corp. has kicked off the sale of its Akyem gold mine in Ghana, which is attracting interest from potential ...
The United States is looking to Africa to help loosen a Chinese stranglehold on battery metals and reduce Russia’s ...
Cleveland-Cliffs Inc. chief executive officer Lourenco Goncalves said he’d consider another bid — with union support — ...
Albemarle, the world’s largest producer of lithium for electric vehicle batteries, said on Wednesday that it will hold ...
No comments have been posted yet ...