(Kitco News) - Gold prices are back above $1,500 an ounce as the Federal Reserve is expected to announce new measures to pump more liquidity into the economy.
According to media reports the Federal Reserve will reinstate its Commercial Paper Funding Facility, which was first introduced during the 2008 financial crisis.
According to a Reuters’ article, The move will allow the Fed to circumvent banks and get liquidity straight to ailing businesses. With the new measures, the U.S. central bank can buy commercial paper from issuers directly.
The new easing measures is helping to support gold prices. April gold futures last traded at $1,501.60 an ounce, up 1% on the day.
The Federal Reserve continues to take unprecedented steps to shore up the U.S. economy so it can weather the current financial turmoil caused by the spreading coronavirus.
The Federal Reserve’s expected move comes only two days after, in an emergency move, it slashed interest rates to a target between 0% and 0.25%. It also announced $700 billion in new quantitative easing measures.
Market analysts have noted that the economic crisis caused by the coronavirus is prompting the Fed to take a more aggressive stance than it did during the 2008 financial crisis.
Although gold prices have struggled along with equity markets. Many analysts have said that when sentiment finally bottoms, gold will be the asset to own as deficits and balance sheets grow out of control.
https://news.google.com/__i/rss/rd/articles/CBMijgFodHRwczovL3d3dy5raXRjby5jb20vbmV3cy8yMDIwLTAzLTE3L0dvbGQtcHJpY2UtcHVzaC1iYWNrLWFib3ZlLTEtNTAwLWFzLUZlZC1leHBlY3RlZC10by1yZWluc3RhdGUtaXRzLUNvbW1lcmNpYWwtUGFwZXItRnVuZGluZy1GYWNpbGl0eS5odG1s0gEA?oc=5
2020-03-17 14:24:00Z
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