Early on Thursday, gold prices continue to trade bullish after rallying during the previous session about growing concerns about the extent of damage the coronavirus pandemic could cause in the global economy. At the time of writing, GOLD is trading at a little above $1,584.

The safe haven appeal of gold remains supported over worries about an upcoming recession in the global economy even as equities edge lower in early trading today. Recent economic data releases also point to signs of strain, with the manufacturing sector in most countries heading towards weakness as a result of the lockdowns in place.

Not only have the shutdowns impacted operations, but demand for manufactured goods, especially non-essential ones, has been on the decline lately. This situation is unlikely to change unless the spread of the coronavirus is brought under control and economic recovery resumes.

Leading banks worldwide have already cautioned about emerging economies being impacted severely because of the crisis in the coming months. Gold prices are likely to remain supported by the dominant risk-off sentiment in markets as the focus remains on latest developments surrounding coronavirus.