Gold jumps past $1,700 level for first time in 7 years on virus fears; investors scurry for safe havens as oil price plunge hammers equities

Spot gold rose 1.5 percent to $1,699.20 per ounce, having touched its highest since December 2012 at $1,702.45 earlier in the session.

Reuters March 09, 2020 09:30:42 IST
Gold jumps past $1,700 level for first time in 7 years on virus fears; investors scurry for safe havens as oil price plunge hammers equities
  • Spot gold rose 1.5% to $1,699.20 per ounce, having touched its highest since December 2012 at $1,702.45 earlier in the session

  • Asian equities sank as investors fled to bonds to hedge economic shock of coronavirus, and oil plunged more than 20% after Saudi Arabia slashed price

  • Palladium fell 2.9% to $2,492.38 per ounce, while platinum was down 1.2% to $890.41

Gold prices jumped past the $1,700 per ounce level for the first time since late 2012 on Monday, as a widening coronavirus outbreak and a plunge in crude oil hammered equities and sent investors scurrying for safe havens.

Spot gold rose 1.5 percent to $1,699.20 per ounce, having touched its highest since December 2012 at $1,702.45 earlier in the session.

US gold futures jumped 1.6 percent to $1,699.70 per ounce.

Gold jumps past 1700 level for first time in 7 years on virus fears investors scurry for safe havens as oil price plunge hammers equities

Representational image, Reuters.

Asian equities sank as investors fled to bonds to hedge the economic shock of the coronavirus , and oil plunged more than 20 percent after Saudi Arabia slashed its official selling price.

The price of futures contracts for the S&P 500 index, a Wall Street benchmark, fell more than 4 percent on Sunday as off-hours trading for US equity markets resumed.

The Japanese yen jumped to a more than three-year high against the dollar, while US benchmark 10-year Treasury yields fell to a record low.

Japan’s economy shrank faster than initially estimated in the fourth quarter on a bigger decline in business spending, data showed, casting a deeper shadow over the outlook as the virus hit production and heightened recession risks.

Mainland China had 40 new confirmed cases of infections on Sunday, the National Health Commission said, taking the country’s total number of confirmed cases to 80,735.

China’s exports contracted sharply in the first two months of the year while imports declined, data showed on Saturday, as the health crisis triggered by the outbreak caused massive disruptions to business operations, global supply chains and economic activity.

The epidemic likely halved China’s economic growth in the current quarter compared with the previous three months, more severe than thought three weeks ago and triggering expectations for earlier interest rate cuts, a Reuters poll found.

Italy’s markets will open as usual on Monday, but traders are expecting a wild start to the week after the government ordered a lockdown of large parts of the north of the country on Sunday, including the financial capital Milan, to fight the virus.

Palladium fell 2.9 percent to $2,492.38 per ounce, while platinum was down 1.2 percent to $890.41.

Silver gained 0.3 percent to $17.37 per ounce.

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

COVID-19 explainer: How will we know we've reached herd immunity? And how emergence of variants impacts it
Health

COVID-19 explainer: How will we know we've reached herd immunity? And how emergence of variants impacts it

It’s not known how long immunity lasts, either after vaccination or from an infection, though experts believe it should be at least several months

Mutation in spike protein makes coronavirus eight times more infectious, finds NYU study
Health

Mutation in spike protein makes coronavirus eight times more infectious, finds NYU study

Researchers noted that the D614G mutation in the coronavirus spike protein likely emerged in early 2020, and is now the most prevalent and dominant form of the virus in many countries around the world

Melbourne to relax third lockdown as no new COVID-19 cases reported in past 24 hours
World

Melbourne to relax third lockdown as no new COVID-19 cases reported in past 24 hours

People will still be required to wear masks and visitors to homes will be limited to five people until 26 February, when the last of the state's 25 active COVID-19 cases will no longer be infectious