Gold Dips After WHO Holds Off on Declaring Global Emergency Over Coronavirus
Arslan Butt • 1 min read
Gold prices have weakened slightly on Friday after the WHO held off on declaring a global emergency over the coronavirus epidemic that is spreading across China. At the time of writing, GOLD is trading at a little above $1,561.
Gold prices, however, are all set for a weekly gain of around 0.3% as markets traded with a risk-off sentiment over worries of the coronavirus spreading across China and other nations, and denting economic growth. The safe haven appeal of gold has enjoyed support over the reigning uncertainty in financial markets over fears of a SARS-like pandemic which had impacted tourism in Asia back in 2002-03.
Gold prices also weakened on the back of a strengthening US dollar, which shares a negative correlation with the precious metal. The dollar soared to a one=month high after the ECB came out sounding more dovish than expected in its latest monetary policy meeting.
Meanwhile, gold remains supported over worries of global economic growth remaining under pressure into 2020, despite trade tensions receding after the signing of the US-China phase one trade deal.