Gold & Silver

Gold edges up as Fed flags coronavirus concerns

Reuters | | Updated on: Jan 30, 2020
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Gold prices inched up on Thursday after the US Federal Reserve said the new coronavirus outbreak could hurt China's economy in the short term.

The spot gold prices rose 0.1 per cent to $1,578.05 per ounce by 0058 GMT, having gained 0.7 per cent in the previous session. US gold futures climbed 0.5 per cent to $1,577.70.

On Wednesday, the Fed held rates steady with its Chair Jerome Powell pointing to continued moderate economic growth and a “strong” job market, and giving no sign of any imminent changes in borrowing costs.

Powell said the new coronavirus outbreak is “a significant thing which will have some effects on the Chinese economy, at least in the short term.”

Foreign governments began flying their citizens out of China's Hubei province, as authorities said the death toll there had touched 170. The World Health Organisation said it would reconvene on Thursday to decide whether the new virus from China constitutes a global emergency.

Falling global demand

Global demand for gold fell in the last three months of last year as sales of gold jewellery, bars and coins declined alongside purchases by central banks and financial investors, according to an industry report said.

Published on January 30, 2020

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