By Swati Verma. (Reuters) – Gold rose more than 3 percent on Tuesday after the US central bank lowered interest rates to help support the economy against damage caused by the coronavirus outbreak, and by expectations of more monetary relief from other central banks. Main incidents: Cash gold gained 2.9 percent to $ 1,636.25 an ounce (at 1919 GMT), its largest percentage increase in one day since June 2016. Gold futures in the United States closed up 3 , 1 percent to $ 1,644.40 an ounce. / Prices had skyrocketed before up to 3.3 percent after the Federal Reserve lowered interest rates, an emergency decision to protect the world’s largest economy from the impact of the coronavirus. / “Clearly, the Fed gave a very strong signal that they are ready to support the US economy against the growing threat of the virus and this is a green light for other central banks to do the same,” said Daniel Ghali, subject strategist TD Securities premiums. / Lower interest rates reduce the opportunity cost of holding bullion and also weigh on US yields and the dollar, where gold is traded. / The dollar index fell to its lowest level in almost 2 months against a basket of currencies. / Gold prices had fallen to 4.7 percent on Friday, amid a global selling current, but have since recovered.
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(Report by Sumita Layek in Bengaluru, additional report by K. Sathya Narayanan. Edited in Spanish by Marion Giraldo)
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