Gold rose to a more than 2-week high Friday as the latest updates on the coronavirus dented risk sentiment, and prompted a flight into safe-haven assets.
Spot gold was up 0.7% at 1,573.53 oz by 1:41p EST (1841 GMT), having hit a peak since 8 January at 1,575.03 earlier in the session.
The precious Yellow metal was up 1% on the week.
US gold futures settled 0.4% higher at 1,571.90 oz.
Friday, The entire market just switched into risk-off mood and went on a hunt for safe havens.
The US Centers for Disease Control and Prevention (CDC) confirmed a 2nd US case of the coronavirus in the country, denting appetite for riskier assets.
This comes after the World Health Organization (WHO) designated the coronavirus outbreak an emergency for China but not for the rest of the world currently, and added it was tracking it “every minute.”
The spread of the virus ahead of this weekend’s Lunar New Year, a peak period of travel in China has investors concerned.
“Mounting concerns about the virus ahead of the weekend are driving accumulation of gold. … Clearly, the headlines will get worse before they get better,” said head of base and precious metals derivatives trading at BMO.
Further developments surrounding the outbreak and the Fed meeting on 28-29 January will be Key drivers for gold next week.
Have a terrific weekend.
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