International spot gold is trading at $1,584.70 an ounce. Influenced by new coronary viral pneumonia outbreak, spread the market risk aversion, the aftershocks to rise sharply in the previous session, the session in gold once extended gains in early trading to $1593.30 an ounce highs, and then fell sharply from that point, since the day high up dropped more than $11 to $1582.09 an ounce low, is trading at $1584 / ounce.
A total of 17,205 new cases of coronary pneumonia were confirmed and 361 died
According to the national WeiJianWei latest bulletin, February 2, 0-24, 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps report new confirmed cases, 2829 cases (2103 cases), hubei province, the new severe cases 186 cases (139 cases), hubei province, the new deaths of 57 cases (56 cases, hubei province, chongqing in 1 case), the new hospital cured cases 147 cases (80 cases), hubei province, the new suspected cases 5173 cases (3260 cases) of hubei province.
24 to February 2, the national health committee received 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps has reported 17205 cases of confirmed cases (Beijing subtract 3 cases, subtract 1 case) in Jiangxi province, the existing 2296 cases of serious illness case of illness, and death cases of 361 cases, cure the hospital cases 475 cases, a total of 21558 cases of suspected cases.
So far, a total of 189,583 people with close contacts have been traced, and 10,055 people have been released from medical observation on the same day. A total of 152,700 people are under medical observation.
We have received a total of 33 confirmed cases from Hong Kong, Macao, and Taiwan: 15 from the Hong Kong special administrative region, 8 from the Macao special administrative region and 10 from the Taiwan region.
Gold was strongly supported by the continued spread of global risk aversion.
Daniel Ghali, the commodity strategist at TD Securities, said gold managed to hold on to its gains in spite of last week’s equity rally, suggesting a safe-haven trade. There is considerable underlying investment demand for gold, which is close to multi-year highs, equity markets are close to record highs, the dollar has been strong in the past few weeks and investment demand will continue to flow into gold as capital seeks to escape the risk of negative real yields.
David Meger, director of metals trading at High Ridge Futures, said the public health incident remains a strong support factor as we see global growth concerns hitting other markets. As a result, we see safe-haven demand driving gold higher. Fears of an outbreak have gripped financial markets, overshadowing the latest batch of upbeat corporate quarterly reports.
Craig Erlam, an analyst at OANDA, said in a note that gold continued to be favored as a traditional safe-haven asset, but at the same time faced strong resistance as it headed toward $1,600, which kept a lid on the rally.
Standard Chartered said it was optimistic about the outlook for gold prices. After the lunar New Year holiday, gold prices appeared to defy seasonal trends.
Gold demand and gold prices tend to perform well at the start of the year, partly because of seasonal effects such as portfolio realignment, as well as stronger physical demand in China ahead of the lunar New Year. With the arrival of the Spring Festival holiday, liquidity is weakened and demand tends to ease. Prices, however, have bucked this trend as safe-haven buying has kept gold close to seven-year highs and equity markets show waves of weakness.
Will continue to see continued upside risks in the second half of 2020. In particular, lower yields, combined with a rise in geopolitical and political uncertainty towards the end of the year, could support prices. Gold and the dollar have at times benefited from safe-haven buying over the past year. But that relationship tends to strengthen as the dollar weakens. While our bullish outlook for gold is not based on a weaker U.S. dollar, a weaker U.S. dollar should give gold a leg up.
Tobina Kahn, chairman of Kahn Estate Jewelers, said there was a lot of risk aversion and that was positive for gold. “People are starting to realize what’s wrong with the U.S. stock market, and the average American is getting smarter, and they know there’s something wrong with this approach. Why are tech stocks up so much? People mean it’s a false sense of security.”
Kahn expects gold to rise to $1,800 an ounce by the end of the year, driven by uncertainty.