Gold holds firm above seven-year-peak as coronavirus impact stokes safe haven demand


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Gold holds firm above seven-year-peak as coronavirus impact stokes safe haven demand

On Wednesday, the 19th of February 2020, the precious metal, spot gold futures’ prices had hit a seven-year peak of $1,610.80 an ounce before wrapping up the day 0.5 per cent higher to $1,611.80 per ounce and during preparatio of the report, February 20th, GMT.

10.00, gold futures' prices were comfortably anchored around $1616.36 an ounce, as growing frets over the Wuhan coronavirus outbreak’s financial impact had been fuelling up the safe-haven demands, while amid a havoc-scale supply shortage palladium futures’ prices continued its record-setting rally.

In point of fact, a number of downbeat remarks from a swathe of heavyweight retailers and tech tycoons ranging from Apple Inc. to Alibaba Holding Group to Amazon.com Inc. about China sales amid a fast-spreading coronavirus outbreak that killed more than 2,000 people over the last three weeks and infected over 70,000, had been rattling commodity and FX markets since mid-January, while demands of safe-haven metals such as gold, silver alongside palladium had been mounting.

Meanwhile, as a quicker rally of spot gold futures’ prices above $1600 level had overwhelmed the investors across all over the globe, forecasting a further bullish momentum for gold futures’ prices in a near-term outlook, a senior analyst at Kitco Metals, Jim Wuckoff wrote in a client note, “The uncertainty regarding when the global supply chain will return to normal is likely to continue to squelch trader and investor risk appetite for at least the near term. That’s bullish for the precious metals’ markets. ”