The US central bank said it would begin backstopping an unprecedented range of credit for households, small businesses and major employers in an effort to offset the "severe disruptions" caused by the coronarvirus outbreak. Speaking of worldwide level, according to Bloomberg, The global spot price of gold was down 0.45 percent, or $ 6.71, at $ 1491.94 an ounce on Monday morning at 10.40 am.
On the Comex market in NY, gold for delivery in April, the most active contract, rocketed by as much as $131 an ounce or 8.4% compared to Monday's close, to trade at $1,698 an ounce by midday before paring some of those gains in early afternoon trade.
"The market reacted instantly with equities and gold soaring behind the Fed's new "Draghi" approach". United States gold futures settled 5.5 per cent higher at $US1,567.60 an ounce.
In the global market, gold prices edged lower in volatile trade on Wednesday as a flight to cash offset growing hopes for a massive United States economic stimulus to stem the coronavirus outbreak's economic toll.
After already aggressively easing monetary policy this month, including sending interest rates to near zero, the USA central bank said it would now lend against student loans and credit card loans as well as buy bonds of larger employers.
The dollar held near a three-year high against major currencies as fresh declines in global stocks and worries about tightening liquidity amid the worsening crisis accelerated the flight to cash.
Market participants are counting on further policy easing in the next few days as the U.S. Senate mulls a $1 trillion package that would include direct financial help for Americans.
"The announcement from the Federal Reserve for "open ended" money printing reverses these stresses and we are recommending buying gold", he said.
Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 1.5% to 908.19 tonnes on Friday. Silver was up 4 per cent by 12:01 p.m.in London and platinum rose 6.8 per cent. Palladium jumped as much as 16 per cent, the biggest intraday increase since 1998.
At 11:51 am, benchmark equity markets benchmarks S&P BSE Sensex and NSE Nifty 50 were up 1.28 per cent at 27,014.98 and 1.19 per cent at 7,894.25 respectively, a day after Prime Minister Narendra Modi ordered a 21-day nation-wide lockdown to contain the rapid spread of the coronavirus.