Gold edges higher despite extended rally in U.S. stocks

EYEAFRICA TV: Beijing, China: Gold futures on the COMEX division of the New York Mercantile Exchange edged higher on Wednesday, despite the U.S. stock market’s rise for the second straight day.

The most active gold contract for February delivery went up 0.60 dollar, or 0.04 percent, to settle at 1,570.40 dollars per ounce.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite Index all rose on Wednesday, thought seemingly lost some momentum.

When equities post gains, gold usually feels the pressure amid reduced appetite for safe-haven assets.

However, the outbreak of the coronavirus continued to support the bullion, said analysts.

Gold futures turned higher during the ensuing electronic trading, after U.S. Federal Reserve left key interest rates unchanged.

By doing so, Fed maintained a wait-and-see stance after wrapping up its first monetary policy meeting of 2020.

As traders weighed the coronavirus cases’ potential impact on the global economy, research firm Capital Economics warned against overreacting at this point.

“For the time being, we are assuming that the response across asset classes will follow the same pattern observed during and after previous epidemics — that the initial panic will be unwound after a few weeks or months,” Capital Economics wrote in a commentary.

As for other precious metals, March silver rose 2.9 cents, or 0.17 percent, to close at 17.487 dollars per ounce. April platinum lost 19.70 dollars, or 1.98 percent, to settle at 975.30 dollars per ounce.

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