On Thursday, gold prices were on the rise though there have been many worries about the economic impact of the coronavirus in China. However, the scare had made the safe-haven more appealing.
Gold was able to go up 0.3% making it $1,581.75 per ounce and gold futures in the U.S. were able to go up 0.7% or $1,580.09.
According to Hareesh V, the head of commodity research at Geojit Financial Services, the uncertainties surrounding the coronavirus are impacting the support of gold.
Due to the fast-spreading virus, Chinese New Year celebrations have been extended. Many companies are not in open, impacting factory output. With that being said, people are trusting gold as a safe haven. So far, 170 deaths have come from the coronavirus, and the World Health Organization is decided to constitute the epidemic as a global emergency. Unfortunately, stocks in the Asian market are not doing so well. However, the dollar was able to hold its own in the midst of the own going crisis.
Coronavirus In Wuhan, China Making Gold Rise All Over, Including The States
According to Stephen Innes with AxiCorp, gold will remain bid until all the humbug of the coronavirus is over. However, he says that some investors are waiting to see the future of gold in the meantime. On Wednesday, SPDR Gold Trust saw their exchange-traded fund rise 0.5% to 903.50 tonnes. They are the world’s largest gold-backed fund.
Sadly, palladium wasn’t doing as well as gold as it was coming in 1.4 percent lower coming in at $2,257.14 an ounce. However, for the month it’s rose 16%, hitting a high record Jan. 20 at $2,582.18. According to analysts in Russia, the Global Palladium Fund will be able to deliver three tonnes of palladium ingots to the market from their current stock. They are willing to do so for a short period of time to help relieve tight supplies.