The central bank implemented the targeted cuts to required reserve ratios on March 16, and the AP deposit was lowered by 100 basis point in the early morning of March 16, Beijing time, and the interest rate was reduced from 1%- 1.25% to 0%-0.25%.

In order to alleviate the impact of public health events on the US economy, the Federal Reserve announced an emergency interest rate cut of 100 basis points in the early morning of March 16, Beijing time, and lowered the interest rate from 1% to 1% by 25% to 0-0.25%, and announced the launch of a quantitative easing program with a scale of 700 billion US dollars.

Earlier, on March 3rd, the Federal Reserve cut interest rates by 50bp, reducing the benchmark interest rate to 1.00- 1.25%. The last time the Federal Reserve cut the 0-0 interest rate to 25% was after the 2008 financial crisis.

After the release of the Federal Reserve's interest rate cut and quantitative easing plan, the US stock index futures plummeted, and the Dow futures fell by more than 1000 points, or 5%, hitting the daily limit.

Stimulated by federal deposit information, cash opened higher on Monday, hitting an intraday high of $65,438+$ 0.575.47 per ounce, with a temporary increase of nearly 3%. However, now the price of gold has fallen, and the disk has broken the 1.530 USD/oz mark, with the lowest contact of 1.523 USD/oz. 68 per ounce.

Information about AP deposits is good for money.

The purpose of AP deposit is to link the market without worry and revitalize the stock market. However, this time, the expected reduction of information on federal deposits has aggravated people's worries about the slowdown of economic growth caused by novel coronavirus infection, which has made the market even more uneasy.

Market anxiety has increased the demand for hedging, which is also the main reason for the rapid decline of gold prices after the rise of each share. So at present, this interest rate cut policy is beneficial to gold.