Coronavirus keeps fueling the yellow metal…
Gold prices rallied to $1,681.25, the highest since February 2013, during early Monday. The yellow metal recently benefited from the rise in the coronavirus cases outside China while no respite from the contagion inside the dragon nation earlier fuelled the safe-haven. It should be noted that the bullion’s prices have been pulled back to $1667.18 by the press time.
With the fears of China’s coronavirus taking a toll on the global economy, traders rush to risk-safety. The same has been pushing the yellow metal’s prices to multi-year tops off-late.
The latest cause of concern was a multi-fold rise in the numbers of coronavirus infected cases from Italy. As per the details, cases from Italy surged three on Friday morning to more than 130 by Sunday.
Even so, China’s President Xi Jinping and the World Health Organization (WHO) continues to try to placate traders by showing optimism that China will be able to tackle the epidemic.
However, the market’s risk-tone pays no attention to such news as S&P 500 Futures decline 1.24% to 3,297 by the press time.
Markets are too sensitive to the coronavirus headlines in recent days and hence any more fearsome news could keep the gold prices heading towards the north.
GOLD LONG (Buy)
ENTER AT: 1684.47