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Gold Futures Snap 5-session Losing Streak, End Sharply Higher

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Gold Futures Snap 5-session Losing Streak, End Sharply Higher
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Gold futures came of three-month lows and ended higher on Tuesday, snapping a five-day losing streak, despite a stronger dollar and a rally in global stock markets.

Global stocks moved higher today with investors reacting positively to a slew of announcements from central banks and various governments, aimed at limiting the impact of the coronavirus outbreak on the global economy.

An announcement from the Federal Reserve that it has established a commercial-paper funding facility to improve liquidity to provide short-term funding for U.S. corporations to roll over short-term debt and to provide credit “that will support families, businesses and jobs across the economy.”

According to reports, the government is backing a fiscal stimulus package of about $850 billion that involves payroll tax cut and aid for airlines.

The dollar index rose to 99.83 by early afternoon, and was last seen at 99.47, up nearly 1.5% from previous close.

Gold futures for April ended up $39.30, or about 2.6%, at $1,525.80 an ounce, recovering from an early low of $1,465.60. Prices hit a high of $1,554.30 in the session.

On Monday, gold futures for April ended down $30.20, or 2%, at $1,486.50 an ounce, a near 3-month

Silver futures for May ended down $0.321 at $12.495 an ounce, while Copper futures for May settled at $2.3135 per pound, down $0.0790 from previous close.

In economic news, the Commerce Department said retail sales fell by 0.5% in February after climbing by an upwardly revised 0.6% in January.

Homebuilder confidence in the U.S. has deteriorated by slightly more than anticipated in the month of March, according to a report released by the National Association of Home Builders. The report said the NAHB/Wells Fargo Housing Market Index fell to 72 in March after edging down to 74 in February. Economists had expected the index to dip to 73.

A report from S&P Global said the global economy is set to see a recession this year due to the severe economic shock caused by the coronavirus, or Covid-19, and the risks remain on the downside.

“As the coronavirus pandemic escalates and growth heads sharply lower against a backdrop of volatile markets and growing credit stress, we now forecast a global recession this year, with 2020 GDP rising just 1.0 percent -1.5 percent,” S&P’s global chief economist Paul Gruenwald said. “The risks remain firmly on the downside.”

The material has been provided by InstaForex Company – www.instaforex.com