Session on Thursday, gold futures prices closed at the highest level within 2 weeks as the Wuhan flu outbreak in Asia made the risk-less sentiment of investors less. The widespread epidemic has put pressure on global stock markets and US government bond yields, and demand for gold has risen.
Altavest chief executive Michael Armbruster told MarketWatch: “The negative reaction in the US stock market pushed down the yield of US government bonds as a result of rising interest in buying safe assets. US government bond yields dropped and demand for safe assets positively impacted gold prices. ”
Session on Thursday, Asian stock markets fell, the US stock market fell and future gold prices rose. US government bond yields fell 3.8 basis points to 1,730%.
Closing the session on Thursday on the New York market, the price of gold delivered in term of February 2020 increased by 8.70 USD / ounce equal 0.6% to 1,565.40 USD / ounce. This is the highest closing price of gold futures since January 7, 2020, according to FactSet calculations.
FXTM senior analyst Lukman Otunuga commented: “Investors’ sentiment toward gold is supported by rising fears about the possibility of a Wuhan virus outbreak in China. The general trend is that investors will switch to holding safe assets, gold price will soon be able to reach 1,568 USD / ounce in the short term, but 1,555 USD / ounce seems safer, gold price will be safe. may soon return to 1,545USD / ounce ”.
The Wuhan flu epidemic has now spread to Singapore, an important tourist region. Notably, it took place at the peak of gold buying in Asia. On Thursday, Singapore confirmed its first case, according to Channel News Asia.
