🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

PRECIOUS-Gold gains on bets for low central bank rates as virus woes persist

Published 07/02/2020, 06:23 am
Updated 07/02/2020, 06:29 am
PRECIOUS-Gold gains on bets for low central bank rates as virus woes persist
XAU/USD
-
XAG/USD
-
F
-
GC
-
SI
-
XPT/USD
-
XPD/USD
-

(Updates prices)

* Palladium, platinum down after weaker car sales by Ford -analyst

* Palladium falls more than 3%

* China to halve some U.S. tariffs from Feb. 14

* U.S. non-farm payrolls data due on Friday

By Diptendu Lahiri

Feb 6 (Reuters) - Gold rose on Thursday as expectations of central banks keeping interest rates low and uncertainties around the economic impact of the coronavirus epidemic fueled appetite for the safe-haven metal.

Spot gold XAU= gained 0.6% to $1,565.42 per ounce by 1907 GMT, having dropped on Wednesday to its lowest since Jan. 21 at $1,546.90. U.S. gold futures GCcv1 settled 0.5% up at $1,570.

"Investors are accumulating gold positions at the moment anticipating more quantitative easing programs and lower rates from central banks," said Bob Haberkorn, senior market strategist at RJO Futures.

Lower interest rates reduce the opportunity cost of holding the non-yielding bullion.

The death toll from the virus in mainland China jumped to 563, with experts stepping up efforts to combat a disease that has shut down Chinese cities and forced thousands more into quarantine around the world. World Health Organization on Wednesday played down reports of "breakthrough" drugs being discovered to treat infected people. more activities by the central banks, especially in China, to prop markets up to nullify effects of coronavirus, the more it will help gold," Haberkorn added.

China said it would halve additional tariffs levied against U.S. goods and has already signed off on more government spending, tax relief and subsidies for virus-hit sectors. gains came despite a record run in Wall Street, a stronger dollar and better-than-expected weekly U.S. jobless claims data. .N USD/

"You can't count out gold" despite the rise in stocks or the dollar, given a global slowdown, even in China, would keep "benign interest rates everywhere investors look," George Gero, managing director at RBC Wealth Management, said in a note.

For future market direction, investors eye the U.S. non-farm payrolls report due on Friday.

"Technically, the gold bulls have the overall near-term technical advantage and have worked to stabilize the market late this week," Kitco Metals senior analyst Jim Wyckoff said in a note.

Elsewhere, palladium XPD= fell 3.2% to $2,353.66 . The metal surged to an all-time high of $2,582.19 on Jan. 20.

Both platinum and palladium, used in emissions-controlling autocatalysts, are seeing some profit-taking due to the weaker sales reported by major U.S. carmaker Ford Motor (NYSE:F) Co F.N , RBC's Gero said in a note. XAG= rose 1.2% to $17.81, while platinum XPT= slipped 2.4% to $957.83 after touching a one-week high of $987.60.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.