Gold Jumps by More Than 10 usd as Fed Cuts Rates by 75 Basis Points

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Broader financial fears, heightened now by what may be seen as a panic move from the Fed are also attracting safe haven flows into bullion.

Gold jumped by more than 10 usd in the immediate aftermath of an emergency 75 basis point rate cut from the US Federal Reserve, as the central bank of the world's largest economy moved to try and stave of a recession which could spread around the world.

Gold jumped to an intraday high of 877.85 usd immediately after the announcement, having been trading around 863 usd before versus 865.10 usd at the close in New York yesterday.

Gold has been boosted by a weakening dollar in response to the cuts, as investors buy into the precious metal as an alternative to the most common form of currency reserves.

Broader financial fears, heightened now by what may be seen as a panic move from the Fed are also attracting safe haven flows into bullion.

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