2020.03.1110:45:00UTC+00Gold Rebounds On Doubts Over US Stimulus

Gold prices rose on Wednesday as investors reacted to negative headlines around the coronavirus and watched for stimulus measures by government to combat the virus' impact.

Spot gold climbed 0.85 percent to $1,663.15 per ounce, after having fallen nearly 2 percent on Tuesday on hopes for U.S. stimulus. U.S. gold futures were up 0.2 percent at $1,663.45.

There were doubts about whether expected stimulus measures would be adequate enough to soften the economic blows from the coronavirus outbreak.

Media reports suggest that U.S. President Donald Trump briefed Senate Republicans Tuesday on his proposed economic stimulus package in response to the coronavirus outbreak.

White House economic adviser Larry Kudlow declined to specify the dollar amount for the package, but confirmed that Trump prefers it include a payroll tax "holiday" through the end of this year.

Meanwhile, China reported an increase in imported coronavirus cases today, reversing four straight days of fewer new cases. Infections in Italy topped the 10,000 mark more than anywhere but China.

The total number of cases worldwide neared 120,000, with a rapid growth in new infections in France, Spain, Germany and Iran.