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April 2, 2020 Gold News 0 Comments

Gold extends gains on worries about slump in global growth

Gold prices inched up on Thursday, following a rally in the previous session, as fears about a coronavirus-led steep slump in global economic activity lent support to the metal as a safe-haven asset.

FUNDAMENTALS

gold-bar-image* Spot gold gained 0.1 per cent to $1,592.56 per ounce by 0011 GMT, having risen 1.2 per cent in the previous session. U.S. gold futures rose 0.9 per cent to $1,605.

* Asian equities looked set for further losses on Thursday, after a dire warning about the U.S. coronavirus death toll and mounting evidence the fast-spreading disease has sent the world economy hurtling into a deep recession.

* The pandemic is putting increasing strains on emerging market economies, but the International Monetary Fund has sufficient resources to meet their needs for now, IMF officials said on Wednesday.

* Factories fell quiet across much of the world in March as the outbreak paralyzed economic activity.

* Boston Federal Reserve Bank President Eric Rosengren said social distancing efforts meant to contain the outbreak have “stilled” the economy and could lead the unemployment rate to “rise dramatically.”

* Germany’s export-dependent manufacturing sector saw the steepest decrease in output in almost 11 years in March, a survey showed on Wednesday, due to virus-led plant closures in Europe’s biggest economy.

* WHO Director-General Tedros Adhanom Ghebreyesus said on Wednesday that his agency, the World Bank and the International Monetary Fund backed debt relief to help developing countries cope with the pandemic’s social and economic consequences.

* Sales of gold from Australia’s Perth Mint soared to their highest in about seven years, the refiner said on Wednesday, as fears over the economic fallout from the virus prompted investors to buy the precious metal as a hedge.

* SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.18 per cent to 968.75 tonnes on Wednesday.

* Palladium rose 1.7 per cent to $2,253.97 per ounce, platinum slipped 0.2 per cent to $716.06, while silver eased 0.2 per cent $13.97.

Source: Economictimes

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