Gold prices have slid slightly lower from the highest level touched in seven years during the previous session as markets continue to fear the possible economic fallout from the coronavirus outbreak. At the time of writing, GOLD is trading at a little above $1,609.

Earlier today China unveiled more stimulus measures in a bid to support its weakening economy as the central bank cut its benchmark lending rate. This has helped diminish the safe haven appeal of gold a little and slide down.

Even though the risk appetite returned to markets slightly, gold prices continue to remain about the 1600 level as markets worry about the repercussions of the outbreak which have not yet been quantified. China’s manufacturing sector and the overall economy are expected to begin as a result of the following shutdown which was enforced in a bid to contain the spread of the virus.

Meanwhile, global companies as well as economies across Asia and the rest of the world with business interests in China are also expected to suffer as a result of the outbreak of the virus. Even a somewhat optimistic Fed has been unable to stem the sharp increase in gold prices lately.