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Gold falls 1% as China moves to contain the economic consequences of coronavirus

UNITED STATES (OBSERVATORY NEWS) — Gold fell more than 1 percent on Tuesday after Chinese moves to ease the economic fallout from the coronary virus epidemic, diverting some investors from safe havens and returning them to risky assets.

By 1555 GMT, the spot price of gold was 1.4 percent lower at $ 1553.79 an ounce, after touching its lowest since January 22 at $ 1550.75. And US gold futures fell 1.6 percent to 1557.50 dollars.

“The dramatic movement in global stock markets, especially in the United States, clearly indicates less concern that the coronavirus will be affected by gross domestic product and less need for safe havens,” said David Medgar, director of mineral trading at High Ridge Futures.

In other precious metals, palladium rose 4.2 percent to $ 2417.50 an ounce in spot transactions, after peaking since January 27 at $ 2425.

“Now that optimism has returned to the financial markets, market participants seem to have forgotten their concerns about the way the spread of the coronavirus may affect demand,” said Commerzbank analysts in a note.

“However, the consequences for China, the main consumer of palladium, are likely to be serious.”

Silver fell 0.4 percent to $ 17.59 an ounce, while platinum fell 0.8 percent to $ 958.38.

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