Precious gold fled seven-year peak; pandemic fear looms large

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Precious gold fled seven-year peak; pandemic fear looms large

On Tuesday, the 25th of February 2020, the precious safe-haven spot gold futures’ prices had beaten a hasty retreat, drawing back from a fresh seven-year-peak after falling as much as 1 per cent which many analysts had painted in words as a profit-taking attempt as escalated worries over financial fallouts of a fast-spreading coronavirus infection across the globe had been keeping the large buyers at bay.

Besides, as the flu-like coronavirus infection had spread in to 30 countries across the globe, raising an alarming bell of a global-scale Pandemic lurking over the horizon, spot gold futures’ prices had whoomphed more than 1 per cent on Tuesday’s (February 25th) market wrap up to wind down the day at $1,644.40 an ounce after breaching a fresh seven-year-peak of $1,689 per ounce yesterday (February 25th).

On top of that, as US investors were spooked following a surprise warning from the US disease prevention authority on Tuesday (February 25th), US gold futures’ prices rounded off the day 1.6 per cent lower to $1,650 an ounce.

Nonetheless, expressing a cautious optimism over further upside momentum of spot gold futures’ prices over the coming weeks, a director of metals trading at High Ridge Futures, David Meger said late on Tuesday (February 25th), “Today’s move is merely a pause in the midst of an upswing.

The pillars of support for gold remain to be low rates by major central banks. Funds have been diversifying profit away from equity portfolios into the gold markets. ”