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PRECIOUS-Gold rises over 1% as U.S. Fed ramps up support measures

Published 03/24/2020, 09:53 AM
Updated 03/24/2020, 10:00 AM
© Reuters.
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March 24 (Reuters) - Gold prices rose on Tuesday, following
a near 4% jump in the previous session after the U.S. Federal
Reserve announced unprecedented measures to support an economy
which is reeling from the coronavirus pandemic.

FUNDAMENTALS
* Spot gold XAU= climbed 1.7% to $1,578.83 per ounce by
0116 GMT. The metal rose 3.7% on Monday, its highest percentage
gain since June 2016.
* U.S. gold futures GCv1 rose 1.6% to $1,592.20 per ounce.
* For the first time, the Fed will back purchases of
corporate bonds, backstop direct loans to companies and will
"soon" roll out a program to get credit to small and
medium-sized business. * Asian shares were set to rally as the U.S. central bank
pledged to help the economy from a fallout. MSCI's broadest
index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added
0.5% in early trade. MKTS/GLOB
* President Donald Trump said on Monday he is considering
how to reopen the U.S. economy when a 15-day shutdown ends next
week, even as the coronavirus spreads rapidly. * A far-reaching virus economic stimulus package remained
stalled in the U.S. Senate on Monday as Democrats said it
contained too little money for states and hospitals and not
enough restrictions on a fund to help big businesses.
* Global central banks also took various measures to
mitigate the damage of the outbreak, with Australia's central
bank proposing to buy $2.35 billion in government bonds, while
Germany agreed for a package worth up to $808 billion.
* Three of the world's largest gold refineries said on
Monday they had suspended production in Switzerland for at least
a week after local authorities ordered the closure of
non-essential industry to curtail the spread of the virus.
* Holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD , rose 1.8% to 923.99
tonnes on Monday. GOL/ETF
* Palladium XPD= surged 7.3% to $1,844.50 per ounce, while
platinum XPT= rose 4.5% to $671.11 and silver XAG= jumped
5.4% to $13.97 per ounce.

DATA/EVENTS (GMT)
0815 France Markit Serv, Comp, Mfg Flash PMIs March
0830 Germany Markit Serv, Comp, Mfg Flash PMIs March
0900 EU Markit Serv, Comp, Mfg Flash PMIs March
0930 UK Flash Serv, Comp, Mfg PMIs March
1345 US Flash Markit Serv, Comp, Mfg PMIs March
1400 US New Home Sales-Units Feb

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