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AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.


2/7/2020: Gold gains on coronavirus worries

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose for a third day, adding 0.2% to close above $1,573, as deepening pandemic worries continued to drive safe-haven demand despite strong US jobs data. The metal still slipped 0.9% for the week following Beijing's announcement of monetary stimulus on Monday.

Confirmed cases of the deadly coronavirus spiked by 3,000 overnight to more than 31,500, according to the authoritative John Hopkins tracker, with the death toll rising to 638.

Apart from the human toll, global trade is beginning to feel the impact. Larger sections of China, which accounts for a third of global trade, are on lockdown. Airlines are grounding flights and laying off workers. Supply chains for everything from toys and clothing to heavy equipment and computers are being disrupted. Honda and Toyota factories have closed in China and Hyundai has ceased production in South Korea.

Wall Street receded today, with the Dow losing 1% while the S&P 500 and Nasdaq slid 0.5%, as traders took profits from a four-day rally driven by aggressive stimulus from China. Hoping to offset the economic damage causing by the coronavirus, Beijing declared on Monday that it will cut interest rates and inject $175 billion in the its economy.

Yields on benchmark government bonds fell alongside equities in the US, Europe, and Japan as investors eschewed risk for safety.

The rise in risk-off sentiment came despite strong employment data showing US nonfarm payrolls added 225,000 jobs in January, handily exceeding forecasts. The construction industry led with 44,000 while manufacturing, which has borne the brunt of the US-China trade war, contracted by another 12,000.

The other precious metals were mixed for the day and week. Silver fell 0.7% for a weekly loss of 1.8%. Platinum added 0.2% today and 0.8% this week. Palladium fell 1.2% for a weekly decline of 0.7%.

At the Comex close: April gold gained $3.40 to $1,573.40; March silver added 13 cents, to $17.69; April platinum picked up $1.80 to $969.20; and March palladium dropped $27 to $2,210.20 an ounce.

  

Metal Ask      Change
Gold $2,239.17           Price Change Up Arrow $38.38
Silver $25.12           Price Change Up Arrow $0.30
Platinum $920.00           Price Change Up Arrow $9.64
Palladium $1,051.00           Price Change Up Arrow $22.41
In US Dollars