Gold prices are surging higher as the safe haven appeal of the precious metal remains in focus over escalating worries of the spread of the coronavirus within and outside China. At the time of writing, GOLD is trading at a little above $1,579.

The risk-off sentiment is truly dominating in global financial markets, helping gold prices climb more than 1% higher, even as some Asian markets remain shut due to the Chinese New Year holidays. China has clamped down on all outgoing overseas group travel as it tries to contain the spread of the epidemic, even as it grapples with rising number of cases and deaths being reported.

Gold is also in demand as more cases of coronavirus get confirmed from other countries, including the US, France, Australia, Japan, Singapore and Malaysia. Global equities have slipped lower over the perceived threat to economic growth the outbreak of this epidemic could cause.

The precious metal, however, remains slightly under pressure, over falling demand among Chinese consumers during the festive season. The Lunar New Year is typically a peak season for making gold purchases in China, the world’s largest consumer of the yellow metal.