Economy News

  In Economy News, Global

Gold is falling after the US Central Bank ruled out the possibility of adopting negative interest rates

Gold fell on Thursday after Jerome Powell, the Federal Reserve chairman, ruled out the possibility of adopting negative interest rates, but his warning of weak economic growth for an extended period limited the losses of the yellow metal.

And gold fell in immediate transactions 0.1 percent to 1714.20 dollars an ounce by 0634 GMT, after jumping 0.8 percent in the previous session due to Powell’s bleak vision of the economic recovery opportunities from the repercussions of the Corona virus. US gold futures rose 0.4 percent to $ 1723.80.

“Powell’s comments that he is not enthusiastic about negative interest rates have curbed the wave of high gold,” said Avtar Sandu, commodities director at Philip Futures.

But Sandow said that the speech in general was positive for gold, adding that “prices rose after Powell said that economies are not doing well due to the virus and more stimulus can be expected.” He expects more on the financial front.”

On Wednesday, Powell pledged to use the tools of the central bank as needed, and called for additional financial spending to help the economy affected by the Coronavirus.

Attention is currently focused on the US unemployment benefits data due by 1230 GMT to pick up more indicators on the outlook for the economy.

Central banks and governments around the world are launching unprecedented financial and monetary support to protect their economies from the pandemic.

Gold tends to benefit from widespread stimulus measures as it is usually seen as a hedge against inflation and a weakening currency.

Emphasizing the economic impact of the epidemic, US producer prices fell in April by the largest amount since 2009, leading to the biggest annual drop in nearly four and a half years.

For other precious metals, palladium rose 0.4 percent to $ 1825.81 an ounce, after falling 2.3 percent on

Wednesday.
And platinum increased 1.2 percent to $ 765.96 an ounce, while silver fell 0.8 percent to $ 15.52. Source