In the morning of Tuesday (February 18), the latest data of the epidemic situation in Hubei province, which has attracted much attention, was released: from 0 to 24 o ‘clock on February 17, 2020, 1,807 new cases of coronavirus were confirmed in the whole province, and by 24 o ‘clock on February 17, 2020, 59,989 new cases of coronavirus were reported in Hubei province. Gold jumped briefly above $1, 585 an ounce in early trading as fears of the disease continued to keep markets in a risk-averse mood.
Gold rose briefly above $1, 585 on risk aversion from pneumonia
Gold was boosted by risk aversion amid continuing concerns about pneumonia.
Spot gold has just jumped briefly above $1,585 an ounce and as high as $1,585.41. Gold is currently trading around $1,584 an ounce.
Resistance for gold remains at $1,600 an ounce, and prices remain close to that encouraging level, said Everett Millman, a precious metals specialist at Gainesville Coins.
“If we go above $1,585 an ounce, we’re bullish, maybe up to $1,600 an ounce,” Millman said.
Kitco data released on Friday showed respondents to its golden week survey were bullish about gold prices in the coming week, saying technical factors and continuing concerns about how coronavirus could affect the global economy would keep gold prices firm even as the dollar and stock markets strengthened.
Seventeen market professionals took part in the Wall Street survey. Eleven professionals (65%) expect gold prices to rise. One professional (6 percent) thinks gold will fall, while five (29 percent) think the market will move sideways.
Meanwhile, a total of 726 ordinary investors were surveyed. A total of 472 ordinary investors (65%) expect gold prices to rise this week. Another 148 (20 percent) think gold will fall, while 106 (15 percent) are neutral.
Some analysts said coronavirus-related shocks could push gold prices to $1,600 an ounce or more.
Rhona O ‘Connell, head of market analysis for Europe, Middle East, Africa and Asia at INTL FCStone, told Kitco News on Friday: “if gold is going to go higher, it’s going to be some kind of external shock that could push gold higher.”
Jennifer McKeown, head of global economic services at Capital Economics, and Bethany Beckett, assistant economist, said the biggest risk the coronavirus needs to watch for is that it could trigger a “black swan” event in China or elsewhere in the world.
Market analyst Anil Panchal noted that gold remained ahead of concerns about the new coronavirus in China.
Gold closed last week above $1,575.90 an ounce, confirming a breakout and opening the way for a rally to its previous high of $1,611.20, the next bullish target, according to Economies.com.