On Tuesday (March 24) major changes happened in the gold market. Due to the epidemic issue, gold mines and refineries around the world have reduced their operations, severely affected the physical supply chain, causing the gold market non function. Banks and brokers were not able to get quotes effectively or fairly.
The Federal Reserve (Fed) announced on Monday an “unlimited” amount of quantitative easing measures and plans to support credit markets to boost the economy, which has been severely damaged by the global pandemic. The Asia-Pacific stock market is doing well today, with the Nikkei rising by more than 1200 points and the Hong Kong HSI currently rising by nearly 1,000 points.
The Fed stated that it would purchase “in the amounts needed” U.S. Treasuries and mortgage-backed securities (MBS) to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy. This is in the form of “unlimited QE”. It is also known as “helicopter money”.