Gold Prices Continue to Rise Over Worries of Coronavirus Turning Into a Global Pandemic - Forex News by FX Leaders
Gold Prices Continue to Rise Over Worries of Coronavirus Turning Into a Global Pandemic

Gold Prices Continue to Rise Over Worries of Coronavirus Turning Into a Global Pandemic

Posted Friday, February 28, 2020 by
Arslan Butt • 1 min read

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.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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