Gold has been on the rise after the Federal Reserve announced an open-ended Quantitative Easing program. From yesterday the yellow metal surged more than 100 dollars from $1480 to $1600. On Monday, the FED committed to unlimited purchases of US Treasuries and agency mortgage-backed securities, flooding financial markets with easy money.
Equities across Asia finished higher with the Energy sector leading the way. Australian shares jumped more than 4% on Tuesday and In New Zealand, the benchmark S&P/NZX 50 index surged 7.2% to finish at 9,109.15, its biggest daily percentage gain ever. In China, mainland stocks posted their biggest gain in three weeks with a rise of almost 3%. While Japan’s Nikkei soared 7%, its biggest daily rise since Feb 2016.
Oil jumped on Tuesday after supported by steps by the U.S. Federal Reserve to bolster the economy and hopes the United States will soon reach a deal on a $2 trillion coronavirus aid package.
GBP/USD has improved slightly after the Fed unveiled one more round of stimulus measures to protect the US economy. The US dollar experienced some weakness as the Trump administration’s fiscal stimulus bill remains stuck in the Senate even as the crisis escalates stateside amid the lockdown. The euro gained more than 1% to $1.0880 bouncing back from a near three-year low of $1.0636 in the previous session.
Gold continues to extending its 3-day bullish streak and is struggling to cross the 1,600 level. The yellow metal rose more than 3% on Tuesday, extending gains from a near 4% surge in the previous session.
On Tuesday RBA committed to buying AUD 4 billion worth of government bonds. Meanwhile, Germany is set to roll out a stimulus package worth around $808 billion to safeguard its economy from the dangers of the coronavirus pandemic. But the US Congress is yet to agree on a +$2tn coronavirus fiscal stimulus package.
Coronavirus Update: British Prime Minister Boris Johnson ordered Britons on Monday to stay at home to halt the spread of coronavirus, imposing curbs on everyday life without precedent in peacetime. UK PM Johnson said “everyone in the U.K. must stay at home. Residents can only leave home to shop for basic necessities. Australia has imposed strict new lockdown rules as reported infections neared 2,000, with most states closing their borders to travellers from other parts of the country.
GOLD: The precious metal continuously trading strong on Tuesday. The price currently trading above $1600 and the next important resistance levels to watch $1610 and $1620.
Quote of the day: Coronavirus came from nature. And the easiest things we should do is eliminate wild animal markets- professor W. Ian Lipkin.