Coronavirus pandemic fears spur up new round of dollar buying, gold gains 1%

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Coronavirus pandemic fears spur up new round of dollar buying, gold gains 1%

On Monday, the 24th of February 2020, global-scale spread of Coronavirus outbreak had sent a shockwave in to the equity and FX market, while frets of a pandemic following a rapid surge of infections outside China, investors had turned their tails on risky assets and returned back to a flight-to-safety response.

As a consequential repercussion of the recent spread of coronavirus in to South Korea, Italy and Iran had been goading traders from all over the world to seek shelter on safe-haven assets, American dollar had regained its safe-haven appeal and in the midday Asia-Pacific trading hours on Monday (February 24th), the US Dollar index (DXY), measured against a bucket of six major currencies on an average, rose to 99.09, while the precious metal gold futures’ prices rose by 1.13 per cent to 1661.59.

On the flipside, assets vulnerable to financial fallouts of coronavirus outbreak had been taking heavy battering, as US crude futures’ prices faltered 2.52 per cent to $52.00 per barrel and UK crude shrugged off as much as 2.75 per cent to $56.43 per barrel over the first six hours of trading this week.

Meanwhile, as a number of analysts were quoted saying that the coronavirus fears became a much more destructive threat followed by its rapid spreading outside of China, stoking fears of a global-scale outbreak or pandemic, during midday Asia-Pacific trading hours, Japan’s Nikkei 225 was trading 3.34 per cent lower to 22,596, Australia’s ASX 200 was battered 2.34 per cent to 6966.9, while NZ 50 was trading 1.33 per cent lower to 11,913.25.