Coronavirus Boosts Bullion's Appeal

APMEX

2/27/2020 8:58:32 AM

U.S. stocks plunged on Monday as a wave in coronavirus cases outside China fueled fears of a bigger hit to global economic growth, driving investors to safe-haven assets. Gold soared to a seven-year high, while oil tumbled nearly 4% as fears of a pandemic grew after Iran, Italy and South Korea reported a rise in virus cases. Gold prices fell on Tuesday as investors reported profits after the yellow Precious Metal surged to a more than seven-year high the previous day, but a spike in coronavirus cases outside China capped bullion's losses. Asian stock markets found some stability after a wave of early selling fizzled out and Wall Street futures managed a solid bounce. Silver and Platinum prices are also down, while Palladium gained 1.7% early Tuesday.

Gold recovered on Wednesday, a day after it posted its biggest one-day drop in nearly four months, as the coronavirus scare prompted safe-haven flows towards bullion. Gold is up more than 3% so far this month, having hit a 7-year high earlier this week as the rapidly spreading coronavirus exacerbated fears of an economic slowdown. World stocks tumbled for the fifth day based on fears of prolonged disruption to global supply chains, while U.S. bond yields held near record lows. Silver and Platinum prices are also attempting to recover, while Palladium has posted a solid gain on Wednesday.

Gold prices increased on Thursday as rising cases of coronavirus beyond China aggravated fears of a pandemic and its broader economic impact, boosting hopes for interest rate cuts by major central banks and demand for safe havens. Palladium soared to an all-time high, driven by short supplies of the auto-catalyst metal. Global stocks have plunged, while U.S. 10-year Treasury yields hit a record low as governments ramped up measures to battle a looming global pandemic of the coronavirus. 

Gold slid 1% on Friday, but the yellow Precious Metal was on track for a third consecutive monthly gain as the spread of coronavirus picked up its pace. The virus scare sent world share markets plunging again early Friday, compounding their worst week since the 2008 global financial crisis. Palladium declined 3.6%, but was on track to gain for the seventh consecutive month, and also mark its biggest monthly gain since November 2016. Silver fell over 75 cents, dropping below $17.00 an ounce, headed for a weekly skid of over 7%. The white Precious Metal is on track to mark its sharpest weekly fall since 2016. Shop now to lock in your pricing.