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Gold prices surged more than 2,5 percent to over seven-year highs yesterday as the spread of coronavirus outside China and its potential impact on global economic growth spurred safe haven buying.
Spot gold was up 2,3 percent at $1 681,84 per ounce by 1250 GMT after hitting $1 688,66, its highest level since January 2013. US gold futures were up 2,2 percent to $1 684,30.
Gold in euros hit an all-time peak of 1 560,39 euros per ounce, while gold priced in sterling rose to a record high of 1 308,45 pounds an ounce.
“Beyond the near term disruptions to global supply chains, the coronavirus could have an effect on headline GDP,” said FXTM market analyst Han Tan.
“On the onset of 2020 we were optimistic that global economic conditions were able to recover on signs of subsiding trade tensions, but the potential fallout from the coronavirus not only triggers risk aversion, but could also erode the growth potential for the full year.” — Reuters.
Online Reporter