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The Fed cut its funds rate by 50 basis points to a range of 1.00%-1.25% in response to coronavirus concerns, bringing the 10-year Treasury yield near 1%, an all-time low. Gold reached an intraday high of $1,650 an ounce on March 3 after the cut.
Record-low Treasury yields reduce the opportunity cost of holding gold and signal limited room for further conventional easing. The article highlights a possible shift to unconventional policy tools, which can affect dollar and commodity prices.
gold.orgJuan Carlos ArtigasMar 4, 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.
