Gold paring gains; global growth fears provide support

UNITED STATES (OBSERVATORY NEWS) — Gold trimmed gains on Thursday as investors sold the yellow metal to lock in profits after prices rose more than 1 percent earlier in the session on growing concerns over how the Corona virus outbreak would harm the global economy.

By 1920 GMT, the spot price of gold was 0.4 percent higher at $ 1645.59 an ounce. Prices have fallen since hitting a seven-year high of $ 1,688.66 on Monday.

There was little change in the US gold futures contracts at settlement, to $ 1642.50.

“Most of the recent rise is due to safe-haven flows that may be very fast and very difficult to absorb if a shift in sentiment takes place,” said Daniel Galli, commodities analyst at TD Securities.

He added, “Everyone is buying gold and looking to sell, and this prevents it from rising further despite the fact that the sale of shares continues.”

Risk-averse investors sold shares, with Wall Street’s main indexes down for the sixth straight session, while US Treasury yields hit record lows.

“Nobody knows what the Corona virus will be,” said Jeffrey Christian, co-director of CBM Group. It clearly reduces economic activity in many parts of the world. ”

The number of new cases of Coronavirus around the world in the past 24 hours exceeded those on the Chinese mainland for the first time. It may take up to 18 months to develop a vaccine.

In other precious metals, palladium rose 1.4 percent to $ 2828.61 an ounce, after hitting an all-time record high of $ 2847.50 earlier in the session.

Nornickel, the world’s largest producer of palladium, said it expects a shortfall in the global palladium market of 0.9 million ounces in 2020.

And platinum fell 0.8 percent to 903.26 dollars, after touching its lowest level since December, while silver fell 0.7 percent to 17.76 dollars an ounce.


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