Fundamental Comment

Gold hits two-week high amid rising Coronavirus concerns

Gold hits two week high amid rising Coronavirus concerns

Gold rose during Monday’s trading to reach a high of more than two weeks, amid fears that the coronavirus would harm the global economy, which has turned investors towards safe assets and shifted away from risky ones.

As of 08:17 GMT, spot gold hovered around $1,577.60 an ounce, where the precious metal hit the highest level today at $1,588.43, noting that the yellow metal opened the new the week on an upside gap of nearly $10.

The rise in gold was due to increased concerns about the coronavirus, after the health committee of China's Hubei Province said in a statement on its website that the number of deaths from the new Coronavirus in the region has increased to 76, and the number of confirmed cases of the virus has increased to 1,423 by the end of January 26.

Chinese President Xi Jinping said on Saturday that the new Coronavirus was spreading rapidly and that his country was facing a "serious situation".

The Chinese media also reported that the authorities imposed restrictions on the entry and exit of cars to downtown Wuhan, the epicenter of the outbreak, and China intensified on Friday its efforts to contain the spread of the new coronavirus.

In the same context, the World Health Organization (WHO) has described coronavirus as "a wide range of viruses that cause disease ranging from common colds to more severe diseases".

As for other precious metals, silver rose 0.39 percent to $18.18 an ounce, after reaching its highest level since January 9 at $18.27 earlier in the session.

Palladium slumped by 1.42 percent to trade at $2,283 an ounce, while platinum goes in the same direction by falling about 1.18 percent at $998.65.

The dollar index, which tracks the performance of the U.S. currency against a basket of six major currencies, rose 0.01 percent at 97.65.

Later in the week, eyes will focus on the interest rate decision by the Federal Reserve and the Bank of England.

Share Article