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 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.