Gold clocks best monthly gain since July 2019 as virus fear bubbles safe-haven appeal


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Gold clocks best monthly gain since July 2019 as virus fear bubbles safe-haven appeal

On Friday, the 31st of January 2020, the precious safe-haven gold futures’ prices gained as much as 1 per cent to wrap up the day at a fresh 6-1/2-year peak at $1589.69 an ounce and posted a monthly gain of 4.78 per cent, its highest since August 2019, when the spot gold futures’ prices surged by 7.65 per cent, as frets of a revived global growth slowdown amid a fast-spreading coronavirus outbreak had stoked a “flight-to-safety” response across money markets all over the world.

On top of that, palladium, an industrial metal widely used in car exhausts, demand of which appears of be galloping over the recent past amid squeezed supplies, snowballed 18 per cent and scored its largest monthly gain in three years shortly after the World Health Organization had declared a global health emergency.

Meanwhile, referring to a gold spree that has been splashing the global markets since the Wuhan virus had broken off, a director of metals trading at High Ridge Futures, David Meger said, “Coronavirus continues to be a strong factor of support as we are seeing global growth concerns hurting other markets across the board.

As a result, we’re seeing safe-haven demand drive into gold. Coronavirus continues to be a strong factor of support as we are seeing global growth concerns hurting other markets across the board. As a result, we’re seeing safe-haven demand drive into gold. ”