Gold Makes Gains as Fed Launches More Stimulus Measures
Arslan Butt • 1 min read
Early on Friday, gold prices continue to rise after gaining more than 2% to touch a one-month high in the previous session, following the Fed’s announcement of further stimulus measures. At the time of writing, GOLD is trading at a little above $1,682.
The Fed’s decision to unveil more financial support, this time for small and mid-sized businesses, has helped boost the safe haven appeal of gold. In addition, it also drove the US dollar lower, which lent an additional boost to the yellow metal prices.
Gold is expected to remain in favor as more governments and central banks continue to roll out stimulus measures to offset the economic impact of the coronavirus pandemic. As the number of cases continue to rise even as shutdowns extend, the risks of the global economy slipping into recession are increasing, while recovery seems more and more delayed.
On Friday, expect muted moves in gold prices as markets remain shut for Good Friday across several countries. This could keep volatility and trading volumes light today.