Gold rallied today on risk aversion caused by the news about the Wuhan coronavirus in China. Other precious metals joined the rally, with the exception of palladium.
Markets were largely in a
Gold is traditionally used as a safe harbor for investors during times of uncertainty and fear. Thus, the troubling news about the virus outbreak was beneficial to the metal.
Not all the news was positive for bullion, though. Federal Reserve Chairman Jerome Powell dashed hopes for interest rate cuts in his testimony, signaling that he sees no reason for a cut in the immediate future. He said:
The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labor market, and inflation returning to the Committee’s symmetric 2 percent objective. As long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy will likely remain appropriate.
Futures for delivery of gold in April gained by $6.7 (0.43%) to $1,578.3 per troy ounce as of 10:46 GMT on COMEX today. March contract for silver rallied $0.14 (0.82%) to $17.64 per ounce. Spot price for platinum rose by $2.56 (0.27%) to $965.71 per ounce, while palladium shed $7.12 (0.3%) to $2.392.69 per ounce.
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