(Bloomberg) — Gold extended gains into a second day after governments and central banks flagged they’ll take more aggressive action to handle the economic fallout of the coronavirus outbreak.
Spot bullion advanced as much as 1.2% to $1,546.41 and traded at $1,542.68 as of 6:42 a.m. in Singapore, after snapping a run of declines to rise almost 1% on Tuesday. The metal tumbled Friday to the steepest weekly loss since 1983.
Silver also jumped to rise as much as 2.2%, heading for the biggest gain in two weeks. Platinum gained as much as 1.3%.
The rally came as the Federal Reserve signaled it will intervene in short-term credit markets, while the Trump administration is discussing a plan that could amount to as much as $1.2 trillion in spending, including direct payments of $1,000 or more to Americans within two weeks.
Gold responded to the Fed’s move to launch “a financial crisis-era program to support U.S. corporates,” Australia & New Zealand Banking Group Ltd. analyst Rahul Khare said in a note.
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Palladium rose as much as 0.6% after surging 3.2% Tuesday.
(Corrects scope of moves in deck headlines, third paragraph; corrects day in final paragraph.)
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