Gold Trades Steady as Demand Dips in China Ahead of New Year Holidays

Gold prices are trading steady early on Thursday after declining over the fears of an outbreak of the coronavirus across China just before

Gold - XAU/USD

Gold prices are trading steady early on Thursday after declining over the fears of an outbreak of the coronavirus across China just before the upcoming Lunar New Year holidays. At the time of writing, GOLD is trading at a little above $1,557.

The WHO is set to take a call later today on whether to classify the epidemic as a global emergency, after China confirmed over 540 cases, including 17 lives lost. Gold prices have dipped as the outbreak has dented Chinese consumers’ interest in purchasing the precious metal during this festive season.

The safe haven appeal of gold, however, remains supported due to the reigning uncertainty of the potential financial impact of the coronavirus epidemic on financial markets. The precious metal receives strong interest amid the prevailing risk-off sentiment in markets over concerns that the outbreak could impact China’s economic growth.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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