A total of 3,062 new cases of pneumonia have been confirmed in China, with a total of more than 40,000 confirmed cases. Notably, new cases fell for six days in a row outside hubei. Gold was buoyed by continued risk aversion amid the outbreak fears, with the spot bullion market jumping above $1,575 an ounce in early trading.
On the same day, a total of 632 cases (356 in hubei province) were cured and discharged from hospital, and 29,307 people had close contact with the patient under medical observation.
According to the statistics of the national health and fitness commission, from 0 to 24:00 on February 9, 444 new cases were confirmed outside hubei province, showing a decline for the sixth consecutive day. In the past 6 days, the data were 890 (3 days), 731 (4 days), 707 (5 days), 696 (6 days), 558 (7 days), and 509 (8 days), respectively.
24 to February 9, according to the 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps, the existing 35982 cases of confirmed cases of 6484 patients with severe cases (), the cumulative cured cases, 3281 cases of hospital, the cumulative death cases, 908 cases, has reported 40171 cases of confirmed cases (hubei subtract 87 examples, jiangxi province, gansu subtract 1 case), the existing 23589 cases suspected cases. A total of 399,487 close contacts were traced, and 187,518 close contacts were under medical observation.
The world health organization (WHO) has sent a team of experts to China to deal with the new outbreak of coronary pneumonia, director-general of the world health organization (WHO) said on February 9.
“I have just been at the airport to see off members of an advance team heading to China, a who-led international delegation of experts on the new coronavirus, led by Dr. Bruce Aylward, WHO has extensive experience in dealing with public health emergencies,” Mr. Tandesay wrote on twitter.
Gold jumped, briefly above 1575
In early Asian trading, spot gold jumped as high as $1,576.50 an ounce as a pneumonia outbreak put markets on a risk aversion. Gold is currently trading around $1,574 an ounce.
Caroline Bain, the chief commodities economist at capital economics, said the coronavirus news would continue to drive the gold market this week.
“Any information we get about the virus will determine the direction of the price,” Bain said. In the past few days, the number of infections has dropped. It’s possible that we’re seeing something that can be controlled very quickly. If that’s the case, I could see gold prices come down.”
But as long as uncertainty persists, gold prices will remain supported, Bain said. “There is still a lot of uncertainty: the virus itself and the economic impact are still unclear. As long as that uncertainty exists, gold will be supported.”
Investors should keep a close eye on what the world’s central Banks do to combat the coronavirus, as any further easing would boost investor confidence in gold for the long term.
“If we are looking at a protracted epidemic, then one would imagine that central Banks would cut interest rates and that would be another factor supporting gold prices,” Bain said.
Some analysts are more bullish on gold this week. Phillip Streible, the chief market strategist at Blue Line Futures, expects gold to rise to $1,590. “The coronavirus scare will continue to be underlying support,” Streible said.
Thursday’s U.S. inflation report and Friday’s retail sales will be two key data points to watch for this week.
Inflation is the fed’s main rhetoric, and it has promised to be patient when allowing inflation to overshoot. McKay points out that this is a very compelling case for owning gold this year.
“Inflation has been falling short for a long time,” he said. The fed has made it very clear that they are willing to let inflation exceed expectations for some time. That has tilted gold bullish for the rest of the year. The fed’s willingness to cut rates rather than raise them is one of the more bullish factors for gold this year.”
On the one hand, McKay said, if the fed cuts rates because the coronavirus shock derailed economic growth, “low rates would be good for the gold market.”