Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts jumped nearly 1.9 percent overnight by the end of the North American trade session on Wednesday. Traders are monitoring fresh stimulus measures out of the United States to insulate against the economic damage being caused by the Covid-19 global pandemic.
The Covid-19 contagion is also called the coronavirus and has force the entire world to enact strict stay at home policies that have shuttered vast swaths of the global economy. Traders are not only worried about a global recession, at this point, but how bad of a depression the world economy will see.
The widely traded spot gold futures contract gained 1.6 percent overnight to close at $1,711.84 per ounce. This was the spot contract’s largest daily gain in almost two weeks.
The U.S. gold futures contract, for front end delivery, added three percent to trade at $1,738.30 per ounce.
The yellow metal, a non-interest bearing anti-fiat currency. The bullion tends to gain when central banks enact accommodative monetary policy measures, like lower rates and governments enact fiscal stimulus measures.
Gold Traders Digest additional U.S. Fiscal Stimulus Measures
The U.S. House of Representatives, sometime today, should pass the Senate’s latest coronavirus stimulus bill. House Speaker Nancy Pelosi said she supports the measure and this will give small businesses and addition $500 billion in economic relief to insulate from the economic blow being felt by the Covid-19 pandemic.
This pandemic has forced the closure of many businesses and stores around the United States which has forced the Federal Reserve Board and Government to take unprecedented steps with monetary policy and fiscal stimulus to support the economy.
Traders Monitor Tensions in the Gulf between Iran and the U.S.
President Donald Trump, on Wednesday, tweeted that he had “instructed the United States Navy to shoot down and destroy any and all Iranian gunboats if they harass our ships at sea.”
A renewed round of tensions or armed conflict between Iran and the United States could cause supply disruptions in this key oil route. This in turn would boost the price of oil. Safe haven assets like the yellow metal would also benefit.
