While infections continue to mount worldwide, Covid-19 cases in China continued to slow which supported S&P 500 Futures to show some strength on March 2nd, stoking investor hopes that disruptions to supply chains in the country will be resolved sooner rather than later. On the other hand, despite the urgency shown by the major central banks to remove the growing fear of Coronavirus, S&P 500 Futures look ready for an exhaustive move; as the WHO Director-General Tedros Adhanom Ghebreyesus has said that China reported 206 new cases of Covid-19, on Sunday, the lowest number of new cases since January 22, 2020.
I find that the steps taken by the major central banks may encourage gold bulls to move upward, and continue to extend indecisiveness in global equity markets; may finally drag down equity indices in negative territory. Secondly, lower interest rates boost non-yielding asset classes like gold.
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