Gold surged by around 1 percent on Monday after incurring its largest daily decline in nearly seven years amid growing expectations for policy easing by the U.S. Federal Reserve and other central banks worldwide to help boost the coronavirus-hit economies.
Spot gold rose 0.9 percent at $1,598.35 an ounce, and U.S. gold futures grew 2 percent to $1,598.20.
On Friday, the precious metals market was routed by traders liquidating their positions due toa coronavirus-led sell-off across global markets, with gold sinking as much as 4.5 percent.
The U.S. Federal Reserve will “act as appropriate” to back the economy amid the flu-like virus outbreak, Chair Jerome Powell stated on Friday.
Futures now imply a full 50 basis point rate cutting during the Fed’s March 18 monetary policy meeting.
The world economy is expected to grow only 2.4 percent this year, the lowest since 2009, the Organisation for Economic Co-operation and Development said on Monday.
Palladium dropped 2 percent to $2,542.58 an ounce, having sank as much as 13 percent on Friday, the lowest since the 2008 financial crisis.
Platinum slightly fell 0.6 percent to $858.87, while silver grew 0.3 percent to $16.70, after both plunged to their lowest in about six months in the previous session.
Platinum is on track to close lower for an eight straight session.