Gold prices have climbed to the highest level seen in two weeks as global stock markets trade bearish over mounting fears about the economic impact of the coronavirus impact which have soured the market sentiment all over again. At the time of writing, GOLD is trading at a little above $1,586.

One of the world’s most valuable companies, Apple, cautioned that it would be unable to meet its revenue guidance for Q1 2020 as the coronavirus outbreak is expected to slowdown production of iPhones even as consumer sentiment in China deteriorates and drags down demand for its products in one of its key markets as a result. Apple’s comments heightened investors’ worries about the economic damage likely to be driven as a result of the virus which has so far infected over 70,000 people and killed over 1,800 people across China and the rest of the world.

The worsening market sentiment supported the safe haven appeal of gold, sending the yellow metal prices higher as a result of the uncertain outlook. However, gold prices were under some pressure after China’s PBOC cut its medium-term lending rates in a bid to support businesses from the effects of the outbreak.