gold Prices in the world at auction on 20 February grew to the highest level in 7 years due to concerns about the outbreak of coronavirus will slow global growth and amid speculation that the Federal reserve system (FRS) the USA will lower interest rate to the end of the year, writes the Business Times.
Gold rose in price at a time when us stocks have reached record high levels, despite the fact that traders are still assess further the impact of the disease.
At the auction on 20 February, the price per Troy ounce of gold (31.1 grams) was 1612,6 dollar — equivalent value of gold recorded in early 2013.
while China, which became the centre of an outbreak of the coronavirus, reported fewer new cases after the next revision of the system of statistics, there are signs of deepening economic damage from the epidemic.
Besides, in Iran there were two deaths, in addition, two people died from the quarantine ship in Japan, which suggests that the coronavirus began increasingly to manifest itself outside of China.
the minutes of the last US Federal reserve meeting showed that the Central Bank may leave rates unchanged for several months 2020, but traders predict one or decrease in 2020.
“Support the yellow metal due to economic uncertainty related to the coronavirus — that is, how long can a pandemic and what its ultimate impact on economic growth in the world?” said Gavin Wendt, senior resources analyst at MineLife Pty in Sydney.
According to him, gold has reached new record highs, which not only reflects the uncertainty of investors, but also the probability that to stimulate activity in the “postcolonialism world” will require more incentives, including lower rates.