As coronavirus cases spread, the price of gold rises again

Bengaluru — Gold prices rose on Thursday as coronavirus cases continued to spread around the world, worsening concerns about the global economic effect of the epidemic and prompting investors to seek refuge in the safe-haven metal.

Spot gold was up 0.7% at $1,646.73/oz by 10.56am GMT. US gold futures rose 0.2% to $1,645.80/oz.

“The virus is really taking over … I think the markets are a bit nervous, [gold is] more prone to higher prices and is well supported on the downside,” said Afshin Nabavi, senior vice-president at precious metals trader MKS SA.

“At the moment, it looks like it’s going to have very negative effects on businesses, tourism, travel and smaller businesses. So I think the economy is going to be hurting big time.”

The International Monetary Fund said on Wednesday the global spread had crushed hopes for stronger growth in 2020, while a Fed report showed there were signs the epidemic had begun to weigh on business sentiment in the US.

European shares fell again on Thursday, taking their cue from US equity futures, which implied a lower open for Wall Street as cases of the coronavirus surged in the US.