Early on Friday, gold prices are climbing higher over increased worries about the spread of the coronavirus worldwide and its potential impact on global economic growth. At the time of writing, GOLD is trading at a little above $1,643.

Global equity markets are all set to post their steepest weekly decline seen since the financial crisis back in 2008-09, driving investors towards the safe haven asset that is gold. As more cases of coronavirus get reported from across the world, fears are growing that this could escalate into a global pandemic which could drive a severe slowdown in economic growth this year.

Moody’s has already estimated that a possible coronavirus pandemic would drive a recession in the US economy as well as in the global economy, and would drive the Fed to cut interest rates. The increasing likelihood of the Fed and other leading central banks cutting rates and easing monetary policies to offset economic weakness are lending further support to gold prices, helping them rise higher.