Gold Weakens But Safe Haven Appeal Still in Focus
Arslan Butt • 1 min read
Gold prices are trading somewhat steady after having climbed to a two-week high during the previous trading session over rising concerns of the spread of the coronavirus across and beyond China. At the time of writing, GOLD is trading at a little above $1,551.
The safe haven appeal of gold was boosted by rising fears of an outbreak of coronavirus, which has spread across major Chinese cities like Beijing and Shanghai. With the upcoming Chinese New Year holidays which would see significantly higher travel in and out of China, markets are concerned that the epidemic could spread more rapidly, affecting more people across China and other countries and possibly even impact economic growth.
Gold prices also remain supported after rockets struck inside Baghdad’s Green Zone, a safe area where government buildings and foreign missions are located. In addition, the precious metal received additional bids after the IMF downgraded global economic growth forecasts for 2020 and 2021.
In addition to upcoming economic data releases, gold can be further impacted by latest developments at the World Economic Forum in Davos, Switzerland. Special focus will stay on the issue of international trade when world leaders converge to set the agenda for the upcoming year.