Gold has started the fresh trading week on a bullish mode following the Fed’s decision to announce the second round of emergency rate cuts within a month even as the number of coronavirus cases and death toll continue to rise worldwide. At the time of writing, GOLD is trading at a little above $1,548.

Gold gained almost 3% after the Fed cut its interest rates down to 0-0.25% and drove weakness in the US dollar as well as global equities as the sentiment surrounding coronavirus and its economic impact worsened further. The Fed’s move, followed by the RBNZ, have failed to reassure markets and has driven the risk-off sentiment in global markets higher, increasing the safe haven appeal of gold as a result.

The RBNZ announced a 0.75% rate cut to protect New Zealand’s economy from a significant impact due to the coronavirus. Meanwhile, the 10-year US Treasury yields have also started sliding towards record lows once again, as investors opt for safer instruments.

Gold prices are also climbing higher in anticipation of a coordinated response expected from the EU later today on the economic fallout of the coronavirus outbreak. The European Commission has forecast a possible recession in the Eurozone economy as a result of the virus which has had a severe impact across several European countries.