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Gold traded slightly higher Thursday, finding modest support as renewed worries over the spread of the coronavirus contributed to demand for havens.
Gold for February delivery GCG20, +0.49% rose $7.70, or 0.5%, to $1,578.10 an ounce, while March silver SIH20, +1.99% jumped 36.3 cents, or 2.1%, to $17.85 an ounce.
Chinese authorities on Thursday said more than 7,700 people have been infected, with at least 170 dead. World Health Organization officials expressed “great concern” over the virus’s spread outside of China. The WHO is scheduled to meet Thursday to weigh if the outbreak should be declared a global emergency.
“Concerns over the coronavirus continue to rise as the WHO is now considering an emergency pronouncement, and news headlines will continue to focus on further travel restrictions, which should continue to support gold as will the news of temporary store and factory shutdowns,” said Stephen Innes, chief market strategist at AxiCorp, in a note.
“The closure will eventually have a real and discernible negative impact on the next on China production and consumption data and could impact the global scrim, given how critical China factory is to the overall global supply chain,” he said.
Gold held on to gains after the Commerce Department said the U.S. economy grew at a faster-than-expected 2.1% annualized clip in the fourth quarter. Economists surveyed by MarketWatch had forecast 1.9% growth.
In other metals trade, March palladium PAH20, -0.03% was up marginally at $2,203 an ounce, while April platinum PLJ20, +0.13% edged up 0.1% to $975.80 an ounce.
March copper HGH20, -0.53% was off 0.4% at $2.544 a pound.
