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Gold Moves Higher Amid Renewed Safe Haven Demand

Published 03/05/2020, 09:37 PM
© Reuters.
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By Noreen Burke

Investing.com -- Gold prices rose on Thursday as cases of the coronavirus continued to spread around the world adding to concerns over the global economic impact of the epidemic, sending investors into safe haven assets.

By 08:21 AM ET (1321 GMT), gold futures for delivery on the Comex exchange were trading at $1,656.20 a troy ounce, up 0.8%. Spot gold was at $1,654.55, up 1.0%.

Cases of the coronavirus surged in the U.S. with the death toll rising to 11 and California declaring a state-wide emergency.

"The virus is really taking over... I think the markets are a bit nervous, (gold is) more prone to higher prices and is well supported on the downside," said Afshin Nabavi, senior vice president at precious metals trader MKS SA.

"At the moment, it looks like it's going to have very negative effects on businesses, tourism, travel and smaller businesses. So I think the economy is going to be hurting big time."

The International Monetary Fund said on Wednesday the global spread had crushed hopes for stronger growth this year, while a Fed report showed there were signs the epidemic had begun to weigh on business sentiment in the United States.

Silver futures ticked up to $17.33 an ounce while platinum futures were down 1.4% to $862.8. Copper futures were little changed at $2.585 a pound.

--Reuters contributed to this report

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