Fundamental Comment

Gold recovers amid persisting worries about Coronavirus

Gold recovers amid persisting worries about Coronavirus

Gold rose during Wednesday’s trading to recover from sharp losses witnessed over the past two sessions, amid continuing fears of the spread of the coronavirus and its impact on the global economy.

As of 07:52 GMT, spot gold hovered around $1,564.65 an ounce, where the precious metal hit the highest level today at $1,566.15, after opening the session at $1,557.75.

The precious metal recovered after it lost more than $40 on Monday and Tuesday, despite gains in Asian shares, especially Chinese shares, after the relative calmness about the Coronavirus.

China's state television reported 3,156 new infections in Hubei province, bringing the number of people infected in the province alone to about 16,678, and the number of confirmed cases of Corona infection within Chinese territory was 24,300.

In Washington, the U.S. State Department announced more flights to evacuate its nationals in Wuhan County starting Thursday.

In the same vein, Britain has urged all its citizens in China to leave because of the outbreak of the virus, as Belgium became the latest country to report a confirmed case.

Investors hope that China's stimulus measures will contribute to reducing the impact of the Corona virus on the economy.

As for other precious metals, silver rose 0.66 percent to $17.67 an ounce, to recover from three consecutive daily sessions of losses.

 

Palladium surged by 1.83 percent to trade at $2,379 an ounce, while platinum goes in the same direction by advancing by 0.30 percent at $968.95.

 

In Asia, stocks continued to recover for the second day in a row, with the Hang Seng index advancing by 0.37 percent to 26,774.80, and the Shanghai Composite Index closed at 1.25 percent increase at 2,818.09.

Australia S&P/ASX 200 finished 0.39 percent up at 6,976.05 and South Korea’s Kospi index ascended 0.36 percent to 2,165.63. In Japan, Nikkei 225 index surged 1.02 percent to 23,319.56 points.

 

Later in the day, eyes will focus on U.S. ADP Employment and the ISM non-manufacturing PMI for January.

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