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

PRECIOUS-Gold rises on rising business impact of virus outbreak

Published 18/02/2020, 06:54 pm
© Reuters.  PRECIOUS-Gold rises on rising business impact of virus outbreak
XAU/USD
-
XAG/USD
-
AAPL
-
GC
-
SI
-
DXY
-
XPT/USD
-
XPD/USD
-

(Adds graphic, updates prices)

* Break above $1595-$1,600/oz could signal further gains- analyst

* Virus death toll in China up by 98 on Monday

* Dollar rises to over four-month high

By Shreyansi Singh

Feb 18 (Reuters) - Gold prices rose to a two-week high on Tuesday, spurred by demand for safe-havens after iPhone maker Apple Inc's revenue warning underscored the financial fallout of the coronavirus epidemic in China.

Spot gold XAU= was up 0.4% at $1,586.93 per ounce by 0717 GMT. Earlier in the session, prices touched their highest since Feb. 3 at $1,587.40.

U.S. gold futures GCcv1 inched up 0.2% to $1,590.

"Asian-Pacific markets have opened broadly lower. Investors right now are very concerned about the economic impact of the coronavirus, also on business sentiment and consumer demand," CMC Markets analyst Margaret Yang Yan said.

Apple has cut revenue forecast for the March quarter on the disruption in China due to the virus and weaker demand from the Chinese market, leading to a risk-off sentiment in the market, she said.

Apple AAPL.O is one of the largest Western firms to be hurt by the epidemic.

It said manufacturing facilities in China that produce iPhone and other electronics have begun to reopen, but they are ramping up more slowly than expected. That pushed U.S. stocks futures as well as Asian shares lower. MKTS/GLOB

The death toll from the virus in mainland China rose by 98, even as its spread slowed with the number of new cases falling below 2,000 as of Monday. However, global experts warned it was too early to say the outbreak is being contained. China continued its effort to ease the drag to the businesses, with its central bank cutting the interest rate on its medium-term lending on Monday. the technical front, "gold sits only 10 dollars or so away from major resistance in the $1,595/1,600 an ounce region. A daily close above this area would be a strong technical signal that further gains lie ahead," Jeffrey Halley, senior market analyst at OANDA, said in a note.

The U.S. dollar, also considered a safe-haven asset during times of economical and political uncertainties, .DXY rose to an over four-month high against key rivals.

"Dollar and gold are negatively correlated, but at this moment even though dollar is moving higher, gold is moving higher and that means the demand for safety is outweighing the currency impact on gold," CMC's Yan said.

Elsewhere, palladium XPD= was flat at $2,522.79 an ounce after hitting a near one-month peak of $2,538.25 earlier in the session.

Silver XAG= advanced 0.6% to $17.86, while platinum XPT= was up 0.5% to $973.49.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Gold versus dollar

https://tmsnrt.rs/325hv7V

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

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.