Coronavirus Outbreak Causes Market Turmoil
1/31/2020 8:23:25 AM
Gold jumped 1% on Monday to a near three-week high as growing concerns that the coronavirus outbreak in China could impact the global economy, pushing investors towards haven investments. The death toll from the coronavirus outbreak has risen to 81 in China, with 2,744 confirmed cases, and the virus has spread to more than 10 countries, including the U.S. and France as of Monday. Palladium dropped 2.2% to start the week after having reached a record high of $2,582.19 last week. Gold prices edged lower Tuesday, as investor worries over the spread of China’s coronavirus somewhat subsided and prices consolidated a day after ending at a more-than-six-year high. Silver prices also dipped on Tuesday, lowering almost .50 cents to stay below $17.60.
Global equity markets trended higher on Wednesday on strong results from Apple and others, but concerns about the coronavirus outbreak in China diminished investor enthusiasm, keeping safe-haven interest in Gold and the U.S. dollar alive. Palladium prices have also remained strong despite news that Russian producer Norilsk Nickel will release three metric tons of Palladium ingots from its stockpiles. Gold and Silver prices rose on Thursday, with the marketplace focus on the coronavirus outbreak. U.S. stock futures tumbled on Thursday, as the coronavirus epidemic fueled concerns of a further slowdown in economic growth in China. Copper has sunk to a five-month low, also attributed to the expected economic slowdown in China. Chinese authorities said more than 7,700 people have been infected, with at least 170 dead as of Thursday morning.
Gold edged lower Friday, stumbling back from a more-than-six-year high but on track for its strongest monthly performance since August. Gold’s rally was boosted this week as worries intensified over the potential global economic impact of the spread of the coronavirus. The World Health Organization said late on Thursday that the coronavirus outbreak was a global emergency, but opposed travel restrictions and said China’s actions so far would “reverse the tide” of its spread. Palladium has continued its rally to end the week, amid demand from the auto industry.