Global markets continue to be priced negatively under the influence of the coronavirus. Ounce gold, which started today with a decline, started to rise with the Fed’s new asset purchases.
Fed, which started to cut the interest rate at the beginning of March, also took the step of monetary expansion, but these moves increased panic aside from stopping the sales in the markets. During this period, the government announced a support package as the number of cases increased rapidly in the USA. Finally, the Fed has taken a new step today.
With the Fed starting to buy open-ended assets, sales decreased as the first reaction in the markets, and the US indices dropped their 3% loss in the day, the US Dollar Index declined to 101.70, and gold rose to the level of $ 1.530.
In the US session, the indices were opened at a lower rate than expected, because of the fact that Trump’s approved aid package has not yet passed through the congress and the decision is expected to be announced today. With the support of Fed and government, money taps are opened and we will do whatever it takes to the markets, do not worry. On the other hand, both officials and important institutions in the US are predicting that the US economy will go down in a very high rate of 20% and above in the 2nd quarter, which means that the unemployment rate will also increase in the country.