The gradual increase of the gold price has led it to the record high over the 6 years. Concerns about the spread of the new coronavirus have triggered the growth.
Experts say that the further, the less investors want to participate in risky assets, preferring “protective assets”. Gold is a typical example of a safe haven asset.
In China, first cases of pneumonia were recorded in mid-December. The epicenter of the virus is in Wuhan. The recent data indicate that now there are about 2800 cases with 80 fatalities. It is also known that the virus has spread beyond China. Cases of the disease were recorded in the USA, Thailand, Australia, Singapore, Japan and France.
The news of a possible spread of the disease has influenced the behavior of stock markets. It is about large asset sales, which will lead to an increase in the demand for gold.
At the session on Monday, February contracts for the precious metal increased 0.7% – up to $ 1,582 per ounce. This is the largest indicator since 2013.
Silver rises in price too. March futures have grown half a percent – up to $ 18 per ounce.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group