Home Featured Gold Futures Settle Slightly Higher

Gold Futures Settle Slightly Higher

Gold Futures Settle Slightly Higher

Gold futures came off three month lows and ended higher on Thursday, after swinging between gains and losses almost right through the session, as traders weighed the impact of the virus pandemic and massive relief measures announced by global central banks.

However, the yellow metal’s uptick was just modest as the dollar stayed firm once again.

The dollar index rose to 102.68, gaining more than 1.5% from previous close.

Gold futures for April ended up $1.40, or nearly 0.1%, at $1,479.30 an ounce, after scaling a low of $1,460,10 and a high of $1,502.80 in the session.

On Wednesday, gold futures for April ended down $47.90, or about 3.1%, at $1,477.90 an ounce, the lowest settlement in about three months.

Silver futures for May ended up $0.362 at $12.134 an ounce, while Copper futures for May ended stronger by $0.345 at $2.1855 per pound.

The European Central Bank (ECB) on Wednesday announced the launch of a ?750 billion ($820 billion) emergency bond purchase scheme, but said the so-called Pandemic Emergency Purchase Program is temporary and will be halted when the coronavirus crisis is judged to be over.

The Bank of England cut its interest rate to a record low today, and expanded its bond buying scheme and the targeted funding measure for small and medium businesses, extending further support to the UK economy amid the spread of the coronavirus, or Covid-19.

In a special meeting, the Monetary Policy Committee voted unanimously to increase the Bank of England’s holdings of UK government bonds and sterling non-financial investment-grade corporate bonds by GBP 200 billion to a total of GBP 645 billion, the bank said.

The bank reduced its lending rate by 15 basis points to 0.1%, cutting the rate for the second time this month. It also decided on Thursday to enlarge the Term Funding for SME scheme.

U.S. President Donald Trump has signed a $100 billion emergency relief package that will benefit workers and the general public affected by COVID-19.

The package provides paid sick, family and medical leave; food and medical aid to coronavirus-hit people; expands unemployment insurance; and free testing for the virus.

The Bill requires employers to provide additional protections for health care workers.

The Families First Coronavirus Response Act, which the House of Representatives passed last week, was overwhelmingly approved by the Senate by a 90-8 vote Wednesday.

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