Gold prices are trading bullish early on Friday and are all set to post their highest weekly gain in over nine years over escalating worries about the potential economic impact of the coronavirus outbreak. At the time of writing, GOLD is trading at a little above $1,679, having increased by around 5.5% so far this week.

Despite the Fed’s recent rate cut decision, US equities fell by over 3% in the previous session as markets worried about the extent of economic damage the virus could drive around the world. More infections and deaths were reported worldwide with 12 people dying from the virus in the US.

Gold has also strengthened after the US dollar weakened to a two-month low over fears of the outbreak impacting economic growth in the US, despite the 0.50% rate cut by the Fed earlier this week. US Treasury yields also fell to record lows, increasing the safe haven appeal of the precious metal.

According to recent estimates by S&P, the coronavirus could cause losses of up to $211 billion in APAC economies, especially Japan, South Korea, Singapore and Australia. Analysts expect other central banks like the BOJ and the ECB to soon announce measures to protect their respective economies from the impact of the virus, and dovish central banks can drive further bullish moves in gold in the near future.