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North American markets up two days in a row

Emerging economic stimulus packages to address the impact of COVID-19 sent North American markets higher yesterday, while the World Gold Council believes the precious metal should withstand the "dash for cash".
North American markets up two days in a row North American markets up two days in a row North American markets up two days in a row North American markets up two days in a row North American markets up two days in a row

Image: Unsplash.com/Franck V

Staff reporter

Canada has approved a multi-billion dollar emergency response act and the US was nearing a Senate vote on a US$2 trillion deal.

North American markets closed higher for the second day in a row, for the first time since mid-February.

The S&P/TSX Composite Index gained 17% over the past two days and despite a drop towards the close, the S&P 500 finished up 1.15% following the previous day's 9.38% gain.

London's FTSE 100 closed up 4.45%, where precious metals producer Polymetal (LSE: POLY) lost 3.6%.

Global futures are mixed.

The gold price is worth about US$1,604 an ounce on the spot market.

"Like most asset classes, gold has been affected by widespread, rapid-fire asset sales and a dash for cash," World Gold Council CEO David Tait said.

"Notwithstanding recent price volatility, I believe gold is as relevant as ever and will play an increasingly important role in investors' portfolios in the years to come.

"The long-term implications of ballooning budget deficits, negative real rates, and debasement of currencies should support gold in future."

In Canada, Ontario-focused gold explorer Treasury Metals (TSX: TML) gained 37.5% yesterday and Alderon Iron Ore (TSX: IRON) shot up 45.8%, both on no news.