• FREE Shipping & Insurance on Orders Over $500
    FREE Shipping & Insurance on Orders Over $500
back to top

PRECIOUS-Gold scales two-week high as coronavirus hits business

PRECIOUS-Gold scales two-week high as coronavirus hits business

(Updates prices)

* Spot gold hits highest since Feb. 3

* World stocks knocked off record highs

* Gold in euros hits record peak of 1,468.54 euros/oz

* Palladium touches near one-month peak of $2,546/oz

By Sumita Layek

Feb 18 (Reuters) - Gold climbed to a two-week high on Tuesday as investors sought safe havens after a revenue warning from iPhone maker Apple due to coronavirus, exacerbating fears of the outbreak's impact on global economic growth.

Spot gold was up 0.4% at $1,586.63 per ounce by 1257 GMT, having earlier risen to its highest since Feb. 3 at $1,589.40. U.S. gold futures inched up 0.2% to $1,589.70.

"We're seeing some renewed weakness in the stock markets following the announcement by Apple ... it highlights that this (coronavirus epidemic) is not just an isolated event unfolding in China," said Saxo Bank analyst Ole Hansen.

"It's having a global impact on supply chains and shipments, this will have a negative impact on growth expectations," Hansen added.

Gold is considered a hedge against risks from political and economic turmoil.

Apple's warning that its sales would fall short sent shockwaves across markets and knocked global equities off their recent record highs.

Manufacturing facilities in China that produce Apple's iPhone and other electronic goods have begun to reopen but are ramping up more slowly than expected, Apple said.

China had to extend Lunar New Year holidays, shut businesses, impose lockdowns and restrict transport to try to contain the outbreak.

Investors remain concerned about the further spread of the virus even as the number of new cases slowed, falling below 2,000 as of Monday.

Meanwhile, gold in euros hit an all-time peak of 1,468.54 euros per ounce.

The dollar rose to a more than four-month high against key rivals, also gaining from safe-haven interest.

"Dollar and gold are negatively correlated, but at this moment even though the dollar is moving higher, gold is moving higher, and that means demand for safety is outweighing the currency impact on gold," CMC Markets analyst Margaret Yang Yan said.

Elsewhere, palladium gained 0.5% to $2,534.93 an ounce after hitting a near one-month peak of $2,546 earlier in the session.

"This can be only partly explained by the ongoing production problems in South Africa due to power supply disruptions and this year's renewed high supply deficit," Commerzbank analysts said in a note.

Silver rose 0.6% to $17.86, while platinum was up 1% to $978.10.

(Reporting by Sumita Layek in Bengaluru Additional reporting by K. Sathya Narayanan Editing by David Holmes)

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

Learn More

Looks like there are no comments yet.