Gold just got a powerful boost from the Federal Reserve, with bullion extending gains in Asia after the US central bank’s emergency, virus-driven rate cut set off a collapse in ten-year Treasury yields to an all-time low.
Bullion prospers from low rates, and more easing is expected from the Fed and other central banks as policy makers seek to blunt the economic fallout from the health crisis. Money markets point to the Bank of Canada jumping into action next with a cut expected its scheduled meeting later Wednesday.