Gold Fed continues to rise with release and virus concerns

Gold prices carried its rise to the second day as the Fed pointed out that it would continue not to change its monetary policy at its meeting yesterday and expressed inflation concerns as well as the continued spread of deadly coronavirus strengthened demand for safe harbors.

The US central bank Fed did not change its benchmark rate at its meeting Wednesday, emphasizing the importance of increasing inflation to the target level of officials of 2 percent. Evaluations after President Jerome Powell’s meeting marked the shift towards a looser monetary policy. Powell also added that the virus outbreak will likely affect the Chinese economy and spread further, but it is too early to assess its impact on the United States.

In other news, the World Health Organization called on the Emergency Committee on Thursday to evaluate the transition to the global alarm state after the number of virus-borne deaths rose to 170 and the rapid increase in the number of cases.

Spot gold rose 0.2 percent after rising 0.6 percent on Wednesday, rising to $ 1,580.04 an ounce at 11:01 am Singapore time. Prices have risen 4.1 percent so far in January and have turned to their biggest monthly earnings since August.

Bloomberg Dollar Spot Index remained flat.

“Markets continue to think about the future of interest rate cuts later in the year,” said Oanda’s senior market analyst, Edward Moya.

Of other precious metals, spot silver rose 0.3 percent to $ 17.6150 an ounce after rising 0.5 percent on Wednesday, while platinum fell 0.2 percent to $ 975.61 an ounce and palladium fell 0.3 percent to $ 2.292.47 an ounce.

The important events to be followed in the market are as follows;

The spread of the deadly coronavirus reduced investors’ appetite for risk assets, including stocks and industrial commodities. The number of cases in China has increased to 7,711.

* China is expected to make efforts to eliminate the economic effects of the coronavirus, with the central bank getting ready to put plenty of liquidity on the market and the government is likely to increase spending.

* Gold assets in gold-backed Stock Exchange funds (ETF) rose this month and rose to 2.567.8 tons as of Wednesday, reaching a record high of seven years.

* The European Parliament endorsed Boris Johnson’s proposal for Brexit and opened the way for Britain’s exit from the European Union (EU) on January 31. With this agreement, the chaotic situation has disappeared for now.