Gold futures on the COMEX division of the New York Mercantile Exchange rose around 2 percent on Monday, after suffering the sharpest drop since 2013 in the previous session.
The most active gold contract for April delivery jumped 28.1 U.S. dollars, or 1.79 percent, to settle at 1,594.8 dollars per ounce.
The yellow metal was supported as central banks promise to act appropriately to mitigate the effect of the coronavirus that is expected to hurt global economies and supply chains.
Bank of Japan Gov. Haruhiko Kuroda said on Monday the central bank would take steps to steady markets, and bolster liquidity through short-term lending operations and asset purchases.
On Friday, U.S. Federal Reserve Chairman Jerome Powell issued a rare, unscheduled statement, emphasizing the central bank’s intention to act appropriately to address the risks posed by the coronavirus.
The precious metal was also boosted by weaker greenback. The U.S. dollar index, which measures the buck against six rivals, went down 0.54 percent to 97.61 as of 1910 GMT.
Gold usually moves in opposite directions with the U.S. dollar, which means if the dollar goes up, gold futures will fall as gold, priced in U.S. dollar, becomes more expensive for investors using other currencies.
As for other precious metals, silver for May delivery added 28.2 cents, or 1.71 percent, to close at 16.739 dollars per ounce. Platinum for April delivery fell 5.3 dollars, or 0.61 percent, to settle at 859.4 dollars per ounce. Enditem