In early Asian trading on Tuesday, spot gold extended a late-day retreat in the U.S. market, suddenly dropping more than $10 in the short term and falling below the $1,650 / oz mark. Analysts said some investors had taken profits from the previous rally, which had led to gold prices falling from their highs, and Slovakia’s prime minister’s rebuttal eased market nerves a bit. However, with the outbreak of pneumonia still a concern, any fresh negative news could reignite safe-haven buying in gold. The dow Jones industrial average tumbled more than 1,000 points overnight on the outbreak fears, while oil prices tumbled nearly 4 percent.
Gold just short – term sharp fall! The 1650 pass was lost
Spot gold fell more than $10 a Troy ounce in early Asian trading on Tuesday, losing $1,650 to as low as $1,642.69.
Gold surged as much as 2.8 percent to a seven-year high of $1,688.90 an ounce on Monday as investors fretted about global economic growth amid a sharp rise in new coronavirus cases outside China.
“The market is spooked right now,” said Bob Haberkorn, senior market strategist at RJO Futures. He was referring to concerns about the new coronavirus.
“The concern is not the virus itself, but the economics,” Haberkorn said. The dow Jones industrial average fell about a thousand points and Treasury yields fell.”
In late U.S. trading, spot gold fell sharply around $20 to just above the $1,650 an ounce mark to close at $1,659.20. Slovakia’s prime minister’s denial eased market nerves a bit.
On Monday, a rumor caught the market’s attention. Slovak prime minister Leonid pereglini was admitted to hospital on the evening of February 22 with a high fever and an acute upper respiratory infection, and temporarily canceled his schedule, the prime minister’s office confirmed in a statement on Tuesday, CCTV news reported. The announcement sparked immediate speculation about the recent spread of a new case of coronary pneumonia in some European countries.
On the evening of February 24, pereglini said on his social media account, “someone is cooking up a hoax on twitter about my new infection. What nonsense!”
Ivana walla magtova, the slovak consul general in Shanghai, confirmed earlier that the slovak prime minister was ill because of fatigue in preparing for the general election. I believe he will return to work soon.
“The current use of the term ‘global pandemic’ is not true, but it is certainly a cause for alarm,” who director-general tandsai said on Monday.
“We have to focus on containing the outbreak while doing everything we can to prepare for the possibility that it could develop into a global pandemic,” he told reporters in Geneva. He added that the sudden increase in cases in Italy, Iran and South Korea was “deeply worrying”, but that countries had not yet seen uncontrolled global spread of the virus, nor large Numbers of severe cases or deaths.
The who said the outbreak in China peaked between January 23 and February 2 and has been in remission since then.
The dow tumbled more than 1,000 points overnight
All three major U.S. stock indexes fell sharply on Monday as a surge in new coronavirus cases outside China raised concerns that the spread of the virus would lead to a prolonged global economic slowdown.
Spain has confirmed its third case of coronary pneumonia, local time on Thursday night. The patient, an Italian doctor on holiday in the southern canary island of tenerife, tested positive for the coronavirus after being admitted to a private clinic after feeling unwell. Spain had previously confirmed two new cases of coronary pneumonia, both of which were cured and discharged from hospital.
The us centers for disease control and prevention (CDC) confirmed on Thursday that 53 new cases of coronary pneumonia had been confirmed in the us, including 18 evacuees from the Japanese cruise ship diamond princess. Among the confirmed cases so far in the United States, 36 are evacuees from Japan’s diamond princess cruise ship, three from wuhan, China, and 14 from the United States. U.S. public health officials are warning of a possible increase in confirmed cases among U.S. citizens who have been evacuated.
Italy has confirmed its seventh death from pneumonia caused by a new coronavirus. The 62-year-old male, from Lombardy’s lodi province, was reportedly diagnosed over the weekend and transferred to a hospital in como. By the end of the day, a total of 229 new cases of coronary pneumonia had been confirmed in Italy.
South Korea has confirmed 833 new cases of the coronavirus as of 16:00 local time Thursday, according to the country’s health ministry. A new coronavirus patient admitted to gyeongbuk university hospital in South Korea died today, the eighth death in the country. A family member of a U.S. military stationed in South Korea living in daegu has been diagnosed with the new coronavirus, according to the U.S. military command in South Korea.
In Japan, a total of 850 people were infected with coronary pneumonia as of Thursday evening local time. They included 145 people infected in Japan and Chinese tourists, 691 passengers and crew of the diamond princess, and 14 people who returned to Japan on a Japanese government charter flight.
The dow closed down 1,031.61 points, or 3.56%, at 27,960.80. The s&p 500 fell 3.35 percent to 3,225.89, while the NASDAQ fell 3.71 percent to 9,221.28. It was the dow’s biggest drop since February 2018. The s&p 500 also had its worst day in two years, erasing year-to-date gains.
Analysts said the drop was due to the spread of the new coronavirus outside China, including a sharp rise in the number of confirmed cases in Italy, South Korea and Japan over the weekend, leading to fears of a longer-term impact on the global economy.
Delta and American airlines led the decline, with both losing more than 6 percent, while united closed down 5.4 percent. Shares of casino operators Las Vegas sands and wynn resorts fell at least 5.2 percent. MGM resorts fell 5.4%.
Chipmakers, heavily exposed to the global economy, also fell. Nvidia fell 7.1 percent and Intel fell 4 percent. AMD fell 7.8 percent. The VanEck Vectors Semiconductor ETF (SMH) fell 4.5 percent.
“The market has been optimistic about the spread of the new coronavirus,” said Quincy Krosby, chief market strategist at prudential financial. However, this optimistic stance is being tested today.”
Wall Street analysts say sentiment is already selling and reassessing as companies reassess whether suppliers and supply chains affect revenue growth. Apple and its supply chain companies also fell, including a 4.8% drop in apple’s shares.
Earlier, prominent us investor warren Buffett said the spread of the new coronavirus had weakened the us economy but said it was still healthy. He still thinks he can hold U.S. stocks for the long term.
Analysts said U.S. stocks are at record highs and could fall further as the timing of the outbreak remains unclear.
The CBOE market volatility index, or VIX, a gauge of investor unease on Wall Street, surged 50 percent to 25.64. Earlier in the week, major Wall Street indexes hit record highs, partly on optimism that the global economy would be able to recover quickly from the outbreak.
International oil prices fell nearly 4 percent
U.S. crude WTI for April delivery fell $1.95, or 3.7 percent, to $51.43 a barrel on Monday, its lowest close since Feb. 13.
Brent crude for April delivery closed down $2.20, or 3.8 percent, at $56.30 a barrel on Monday, its lowest close since Feb. 12.
Analysts said the worsening of the disease in many places outside China had added to the challenge to oil demand, with oil bulls in disarray.
U.S. WTI crude hit an intraday low of $50.45 a barrel, while Brent hit an intraday low of $55.13.