Gold Futures Up Over 3% As Fed Opens Commercial Paper Funding Facility

Gold futures moved up sharply Tuesday, finding support after the U.S. Federal Reserve launched a crisis-era commercial paper funding facility aimed to help businesses suffering from the coronavirus-hit economy.

Risky assets, including gold, are getting a bid from the Fed’s new commercial paper facility. The promise of more action for the Fed was what gold needed to rise higher.

April gold GCJ20, +3.15% added $51.10, or 3.4%, to trade at $1,537.60 an ounce. Prices for the most-active contract on Monday had settled at their lowest since Dec. 20, according to Fact
Set data.