Gold prices maintain gains as Fed announces new measures
Gold prices continued its climb after the U.S. Federal Reserve announced on Monday new measures in a bid to shore up an economy affected by the coronavirus.
In the unexpected announcement, the Central Bank said that it would be buying an infinite amount of Treasury and mortgage-backed securities in order to lower borrowing costs. In addition, programs would be established to provide credit flows to corporations as well as local and state governments. However, investors still wait for a fiscal stimulus package which has yet to be delivered.
Gold has been seen as a safe haven once more after a Dollar stampede from the past two weeks that left the yellow metal in a steep decline as investors sold off positions for cash.
Spot gold advanced by 0.9% to $1,567.42 per ounce at 7:58 AM in Singapore following a 3.6% gain on Monday.
In addition, other metals such as silver and platinum had also jumped by more than 3%.