Gold prices have dipped slightly lower but continue to trade above the key $1,600 level early on Wednesday over continued fears of coronavirus impacting global markets and economic growth. At the time of writing, GOLD is trading at a little above $1,601.

The slight reduction in gold prices came in after China reported a slowdown in the number of infected cases in the Hubei province for the second consecutive day, even though the death toll from the virus continues to grind higher. The safe haven appeal of the precious metal remains strong after the WHO cautioned that it was too soon to confirm whether China had successfully contained the spread of the virus.

The market sentiment also saw a slight improvement during the previous session after China announced that companies could start applying for tariff exemptions to import nearly 700 US goods, as part of the phase one trade agreement signed in January. However, this failed to stop gold from gaining 1.3% and rising above $1,605 in the previous trading session.