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May, 20 - Gold is likely to see safe-haven buying

Precious metals gained after Fed Chair Powell’s bearish comments.

 

gold20052020The head of the central bank warned the Senate committee that the current downturn is significantly worse than any recession since World War II and that long-term unemployment could damage the economy.

Powell reiterated his commitment to using a full range of tools to support the economy, including leaving interest rates near zero until the economy is back on track. This saw safe-haven buying remain strong, with gold prices pushing back towards $1,750/oz.

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