Gold continues to shine-on in the face of the coronavirus
- Gold holding in bullish territories as coronavirus remains a concern.
- Futures ended the day higher for a fourth consecutive gain.
The price of gold has been holding in its February bullish correction with a high of $1,576.98 having travelled from a low of $1,568.13, +0.30% at the time of writing – futures ended the day higher for a fourth consecutive gain.
The economic impact on China due to the fast-moving outbreak of the coronavirus is taking its toll on investor's risk appetite and safe-haven asset classes, such as the precious metals are underpinned due to the flows and lower rates of interest in the bond markets. Investors are more inclined to invest in gold at times of lower yield, especially when there are fragilities in global equity prices.
Coronavirus spreads globally
The latest on the coronavirus is that it has been spreading globally and more than 900 people have died from the new virus in China, surpassing the SARS 2002-3 epidemic, which also began in the country, killed 774 people worldwide.
Britain and Spain have both confirmed new coronavirus cases this weekend. In the UK, on Sunday, the total cases were now reported as to being up to four. The infected person was a “known contact of a previously confirmed UK case,” the chief medical officer, Chris Whitty, said in a statement. The announcement came just hours after a flight from Wuhan carrying 200 Britons and European citizens arrived in Britain.
As a result to the spread of the virus as well as lower US yields, 10-years -0.73% at the time of writing, gold for April delivery GCJ20, +0.36% on Comex climbed $6.10, or 0.4%, to settle at $1,579.50 an ounce, scoring a fourth consecutive gain, with the most-active contract at its highest finish in a week. On Friday, it showed a 0.9% decline for the week.