Gold jumps as Fed stimulus pledge halts rush for cash

Bengaluru — Gold rose 2% on Tuesday, extending gains from a near 4% surge in the previous session, after the US Federal Reserve’s unprecedented measures to help an economy reeling from the coronavirus pandemic halted a rush for cash.

Spot gold rose 1.3% to $1,573.17 an ounce by 3.33am GMT. The metal rose 3.7% on Monday, its highest percentage gain since June 2016.

US gold futures rose 1.5% to $1,590.50.

“Gold is surging higher after the Fed went above and beyond in unveiling measures to support the economy,” said Edward Moya, a senior market analyst at broker Oanda.

The US central bank on Monday rolled out an extraordinary array of programmes and will lend against student loans, credit card loans and US government backed-loans to small businesses. That failed to push Wall Street higher on Monday, but it was enough to drive a rebound in Asian shares.