- January 27, 2020
- Posted in LOCAL
Gold edged down on Friday as the dollar rose and appetite for riskier assets improved after the World Health Organisation tempered fears of a global coronavirus outbreak.
Spot gold was 0,1 percent lower at $1 561,18 per ounce by 1039 GMT but holding above the key $1 550 support level and en route to a post small weekly gain of about 0,3 percent, as bets on easy monetary policy globally and lingering uncertainties on the world stage buoyed appetite for the safe haven.
US gold futures slipped 0,3 percent to $1 560,80 per ounce.
“Gold prices are facing headwinds from gaining equities and a stronger dollar but it is unlikely to fall below $1 520 as a bunch of geo-political uncertainties still exist,” Saxo Bank analyst Ole Hansen said.
European shares gained after the WHO designated the coronavirus outbreak an emergency for China but not yet for the rest of the world.
However, the spread of the virus ahead of the Lunar New Year, a peak period of travel and gold demand in China, kept investor concerns heightened.
Further, the dollar hovered close to a more than one and half month high against a basket of currencies, making gold expensive for buyers holding other currencies. — Reuters.