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Gold Prices Surge on Fed Reserve Slashing Benchmark Interest Rates
from Sputnik News:
Gold tumbled as much as 4.5 percent on Friday, as equity markets continued to be under pressure and investors preferred cash, continuing to sell bullion to meet calls across other markets.
Bullion jumped nearly 3 percent on Monday in the wake of the US Federal Reserve’s slashing its benchmark interest rate by a full percentage point to near zero the day before.
Spot gold surged 1.4 percent to $1,550.26 per ounce by 0030 GMT, rising by some 2.8 percent earlier after its 3 percent drop on Friday.
US gold futures were up 2.4 percent to $1,553.30 per ounce.
“Gold is slowly getting its groove back… Prices will ultimately benefit from all this global monetary and fiscal stimulus. Gold should grind its way back above $1,600 an ounce after we see all the other central banks ramp up their efforts this week,” Bloomberg quoted Edward Moya, a senior market analyst at Oanda Corp. as saying.
Bullion’s current rally followed a steep decline in the previous session, as gold futures had logged some of the worst weekly losses by 13 March, registering a drop of more than 9 percent – the biggest percentage decline since the period ended 23 September 2011, according to FactSet data.
Gold for April delivery GCJ20, 1.971 percent on Comex fell $73.60, or 4.6 percent, to settle at $1,516.70 an ounce.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported its holdings plunged 1.33 percent to 931.59 tonnes on Friday.
Speculators reduced their bullish positions on COMEX gold and silver contracts in the week to 10 March, the US Commodity Futures Trading Commission (CFTC) said on Friday.
Palladium fell 3.1 percent to $1,750.50 per ounce, while platinum slipped 0.8 percent to $755.50.
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