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Spot gold rose 2.9% to $1,636.25 an ounce on March 3 after the Fed cut its target range by half a point to 1.00%-1.25% in an emergency move tied to the coronavirus outbreak. Gold futures settled 3.1% higher, their biggest one-day gain since June 2016.
Lower policy rates cut the opportunity cost of holding non-yielding bullion and weaken the dollar, which supports precious metals. For feed buyers the effect on grain and feed prices is indirect, through a softer dollar and broader risk sentiment.
reuters.comSwati VermaMar 3, 2020After 4,478 past macro events, US Dollar (Broad) moved a median +0.0% over 5 sessions (51% higher; middle half -0.4% to +0.5%), and +0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
