Gold Traded Near a Seven-Year High On Concern That The Coronavirus Outbreak Will Retard Global Growth

Bullion is rising at a time U.S. stocks are at an all-time high even as traders weigh the disease’s impact. While Hubei, the center of the outbreak, reported fewer cases after another revision, there are signs of deepening economic damage. In addition, two deaths were reported in Iran and two people from a quarantined ship in Japan died, highlighting the threat outside China.

The traditional haven has climbed more than 6% this year amid mounting concern over the effects of the virus, with companies from Apple Inc. to Burberry Group Plc cutting guidance. While minutes from the latest Fed meeting showed that officials indicated they could leave rates unchanged for many months, futures traders maintained expectations for at least one cut over 2020.


+


“Support for the yellow metal is driven by economic uncertainty related to the coronavirus – i.e. how long could the pandemic last and what will its ultimate impact be on world economic growth?” Gavin Wendt, senior resource analyst at MineLife Pty in Sydney, said in an email.

“Importantly, we’ve seen gold performing strongly in a range of currencies, hitting new all-time highs during 2019 and 2020,” said Wendt. That reflects not only investor uncertainty, but also a likelihood more stimulus will be required, including lower rates, to boost activity in a post-coronavirus world, he said.

Spot gold was steady at $1,610.43 an ounce at 11:27 a.m. in Singapore, near Wednesday’s peak of $1,612.98, which was the highest since March 2013. Holdings in global exchange-traded funds backed by bullion have risen to a record, and are on course for a sixth weekly expansion.

Prices may top $1,650 over the coming weeks, according to UBS Group AG’s Global Wealth Management unit, which says it remains long on the precious metal.

OVERNIGHT MILLIONAIRE MIND-HACKS SECRETLY USED BY THE RICH & FAMOUS…

“With U.S. equity valuations elevated, any further upsets could see another bout of volatility, a further rally in government bonds and a higher gold price,” analysts Wayne Gordon and Giovanni Staunovo wrote in a report dated Feb. 19.

Palladium climbed 0.5% to $2,731.09 an ounce. The metal used to curb emissions from vehicles touched an all-time high of $2,849.61 on Wednesday on concerns over a widening global deficit, and as the Chinese government pledged to stabilize car demand in the country.

Among other main precious metals, silver was flat, while platinum dropped.


+


gold-news


MOST POPULAR ARTICLES



One thought on “Gold Traded Near a Seven-Year High On Concern That The Coronavirus Outbreak Will Retard Global Growth

  1. Pingback: Gold Traded Near a Seven-Year High On Concern That The Coronavirus Outbreak Will Retard Global Growth -

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.