Gold gains on economic toll of coronavirus
Holdings in the world's largest gold-backed ETF, SPDR Gold Trust, held near their highest in more than three years
Bengaluru — Gold rose 1% on Wednesday, regaining some ground after Tuesday’s near 2% slide, as fears over the economic toll of the coronavirus outweighed an uptick in equity markets following an interest rate cut from the Bank of England (BoE).
The BoE on Wednesday joined other central banks in cutting rates, raising hopes for more co-ordinated monetary and fiscal stimulus. Looser monetary policy, while stimulating economic growth, tends to benefit gold, as it cuts the opportunity cost of holding nonyielding assets. Spot gold was up 1% at $1,665.09/oz by 11.09am GMT, while US gold futures gained 0.3% to $1,665.70/oz...
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