gold Futures on Thursday rose due to renewed concerns of the spread of coronavirus. The center of attention of investors again the possible consequences of the epidemic on the economy that supports quotes.
Chinese authorities have introduced a new method for diagnosis of coronavirus. As a result, the number of confirmed cases of the disease, first recorded in the Chinese city of Wuhan in December, has increased seven-fold, according to the National Commission on health of the PRC.
"in view of the significant global risks and reduce supply chain and demand it is still too early to discount the threat posed by the coronavirus, so the role of gold as a safe-haven asset remains crucial," said Stephen Innes, chief market strategist at AxiCorp.
the April gold futures on the COMEX rose 7.20 dollar, or 0.46% to 1578,80 dollars per ounce, after rising 0.1% on Wednesday. March silver futures rose 12 cents, or 0.7% to 17,619 dollars per ounce.
Prices on precious metals receive support from reduction in government bond yields observed due to the renewed concerns about the spread of Chinese coronavirus and its potential impact on global economic growth.
For example, the yield on 10-year Treasury bond fell 3.5 basis points to 1,592%. The decline of profitability makes not bringing the coupon income commodities more attractive to investors. The Dow Jones Industrial Average and S&P 500 also showed a tendency to decline, which provided additional support to prices for safe-haven assets.
the ICE dollar Index, which tracks the US currency against a basket of other major currencies, grew for a week. He recently began to decline. Gold prices generated in dollars, so a weakening us currency could lead to increased demand for gold among foreign buyers.
in addition, the consumer price index in January rose by only 0.1%. Excluding food and energy, the index rose by 0.2%. The number of initial claims for unemployment benefits in the week February 2-8, increased by 2 000 to 205 000, which indicates a relatively stable situation on the labour market.
