Gold Climbs Higher Over Coronavirus Fears, Neutral Fed
Arslan Butt • 1 min read
Early on Thursday, gold has resumed its bullish trend, supported by worries of the coronavirus outbreak’s impact on economic growth and by the Fed holding its interest rates steady in the latest monetary policy meeting. At the time of writing, GOLD is trading at a little above $1,579.
The safe haven appeal of gold is dominating in global markets over concerns compounded by the rise in the number of affected patients and death toll due to the coronavirus in China. The WHO is set to meet again later today, and could possibly decide to officially announce a global health emergency over the outbreak.
Meanwhile, in the previous session, the Fed opted to hold its rates steady and Chairman Jerome Powell indicated that the US economy is set to witness moderate growth, supported by robust employment. Gold has turned bullish following the Fed’s statement which did not sound too hawkish, even as the central bank commented on the outbreak and forecast that it could have some short term effect on China’s economic growth.