Strengthened U.S. Dollar Dulls Gold Spot Price

Strengthened U.S. Dollar Dulls Gold Spot Price


2/7/2020 8:33:33 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. Gold inched up on Friday as a rally in global stock markets briefly stalled due to worries over the economic impact from the coronavirus, while investors awaited U.S. jobs data. Silver slipped .2% on Friday, on track for its worst week in over two months.

APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies

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