Gold prices rise globally after America banned travel due to Coruna

12:22 PM

Thursday 12 March 2020

Cairo – agencies:

Gold prices rose globally, on Thursday, due to concerns about the economic impact of the Corona virus, as the United States suspended travel from Europe hit by the virus.

And gold rose in immediate trading 0.5% to 1642.46 dollars an ounce (0800 GMT) by 0854 GMT. There was little change in the US gold futures contracts at $ 1642.20.

IJ Markets analyst Kyle Roda said the travel ban was “a big surprise and a huge shock to the market” and showed that investors had yet to see the full economic consequences of the Corona virus outbreak.

On the other side, Roda added, traders sell gold to fund margin positions, which inhibits the gains from the yellow metal.

On Wednesday, US President Donald Trump announced the suspension of all travel from Europe, with the exception of the United Kingdom, to the United States for 30 days, which led to sales in global stock markets and the dollar.

But the precious metal trimmed some of the gains from a 0.9% jump earlier in a choppy session and held at well below the seven-year peak of $ 1702.56 on Monday.

The WHO described the Corona virus as a pandemic, with 119,100 people infected with the virus worldwide.

Central banks around the world have taken steps to protect their economies from spreading, while the Bank of England cut interest rates on Wednesday in its latest move. The Federal Reserve slashed interest rates in an emergency move last week.

The European Central Bank is expected to follow suit when it meets later on Thursday.

As for other precious metals, palladium fell 3.2% to $ 2232.09, after falling by as much as 5.9% to the lowest level in nearly two months.

The metal was down about 22% since it reached an all-time high of $ 2875.50 on February 22, while demand fears began to overshadow a severe supply shortage of the metal.

Silver fell 0.4% to $ 16.69, while platinum fell 0.9% to $ 825.51.

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