03.03.202009:58:00UTC+00Gold Prices Rise On Stimulus Bets

Gold prices rose on Tuesday amid bets that the world's major central banks and governments will take action to soften the economic blow from the coronavirus outbreak.

Media reports suggest that Group of Seven nations are drafting a statement outlining a plan to mitigate the damage to their economies from the fast-spreading epidemic.

Spot gold rose half a percent to $1,598.89 per ounce, after rising 0.4 percent in the previous session. U.S. gold futures were up 0.3 percent at $1,599.70.

Expectations for global coordinated monetary policy stimulus are driving a rebound in risk sentiment after the European Central Bank joined its U.S. and Japanese peers in indicating that it stands ready to take "appropriate and targeted measures" to fight the economic impact of coronavirus.

Japanese Prime Minister Shinzo Abe said today his government was ready to deploy further fiscal stimulus measures if needed.

Australia's central bank today cut interest rates to a record low 0.5 percent to help cushion the economic damage from the coronavirus outbreak.