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

PRECIOUS-Gold poised for a weekly gain as virus fears lift safe-haven demand

Published 15/02/2020, 06:02 am
PRECIOUS-Gold poised for a weekly gain as virus fears lift safe-haven demand
XAU/USD
-
XAG/USD
-
GC
-
SI
-
XPT/USD
-
XPD/USD
-

(Updates prices)

* Gold on track for a weekly rise

* U.S. consumer spending slows

* China reports 121 new deaths and 5,000 new coronavirus cases

* Palladium up over 4% for the week so far

By Diptendu Lahiri

Feb 14 (Reuters) - Gold prices rose to the highest level in more than a week on Friday, on track for a weekly gain, as investors bet on the safe-haven metal to hedge against the economic impact of the coronavirus outbreak.

Spot gold XAU= rose 0.5% to $1,583.18 per ounce by 1:43 p.m. EST (1843 GMT), after touching $1,583.76, its highest price since Feb. 3. For the week, bullion has so far gained about 0.8%.

U.S. gold futures GCcv1 settled up 0.5% at $1,586.40.

"The coronavirus scenario is still unclear and the on-off headlines on the situation are making the stock markets volatile, forcing investors to take refuge in safe-haven gold," said George Gero, managing director at RBC Wealth Management.

"Even with the virus gone, gold is expected to trade in the $1,550-$1,600 range as other uncertainties like lower interest rates across the major central banks, Middle East tensions and other political risks still exist."

Chinese authorities on Thursday reported 121 new deaths and 5,000 new coronavirus cases in mainland China, and economists scaled back growth expectations for the world's second-largest economy as they assessed the impact of the outbreak. stock markets have had a volatile week as investors took and quit positions in riskier assets driven by the frequently changing headlines around China's coronavirus outbreak.

Wall Street opened slightly higher, with gains kept in check by concerns about the economic hit from the outbreak. .N

Further supporting gold's rise, U.S. Treasury yields declined after soft retail sales data amid virus concerns. US/

U.S. consumer spending appears to have slowed further in January, which raises concerns about the economy's ability to continue expanding at a moderate pace. still target a decline in U.S. Treasury yields, in addition to dollar weakness from a trade-weighted angle. We believe this gives gold a good risk-reward even if we see no further bouts in equity market uncertainty," UBS analysts said in a note.

Among other precious metals, palladium XPD= fell 0.3% to $2,417.20 an ounce, but was on track to register its best week since the week ended Jan. 17, with a gain of more than 4%.

Silver XAG= rose 0.7% to $17.75 , while platinum XPT= fell 0.3% to $964.53

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Precious metals this week png

https://tmsnrt.rs/2H8hN3X Precious metals this week interactive

https://tmsnrt.rs/2w1d6qw

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.