Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

PRECIOUS-Gold slides from 7-year high, coronavirus concerns persist

CommoditiesFeb 25, 2020 16:11
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. PRECIOUS-Gold slides from 7-year high, coronavirus concerns persist

(Updates prices)
* Gold priced in euros, pound slides from record highs
* Global stock markets stabilize
* Coronavirus interactive graphic:

By Harshith Aranya
Feb 25 (Reuters) - Gold prices dipped on Tuesday as
investors booked profits after the metal soared to a seven-year
high in the previous session against the backdrop of a rise in
coronavirus cases outside China.
Spot gold XAU= had slipped 0.5% to $1,652.35 per ounce by
1450 GMT, having shed more than 1% at one point earlier in the
session. U.S. gold futures GCcv1 fell 1.3% to $1,655.30.
On Monday, the metal surged as much as 2.8% to $1,688.66,
its highest since January 2013.
"Since then the market has basically run into some
profit-taking despite the biggest sell-off in the global stocks
for quite a while and it just highlights the market may have run
ahead of itself," said Saxo Bank analyst Ole Hansen.
Global stock markets stabilised on Tuesday after European
shares had their worst one-day loss since June 2016 in the last
session. MKTS/GLOB
Countries around the world are stepping up efforts to stop a
pandemic of the virus that emerged in China and is now spreading
in Europe and the Middle East. Mainland China in total had 508 new confirmed cases, up from
409 on Feb. 23, bringing the total number of confirmed cases so
far to 77,658. Gold in euros XAUEUR=R and gold priced in sterling
XAUGBP=R slid from all-time peaks hit on Monday.
"With the virus spreading to other regions, and if China
experiences a relapse and the drags on growth extend into April,
(spot) gold could move to $1,650–1,700 per ounce," UBS analysts
wrote in a note.
The rapid spread of the virus beyond China has heightened
fears over its impact on the global economy, driving some bets
that the U.S. Federal Reserve will be pressed to cut rates to
cushion the hit. "The market is most certainly already in the process of
pricing in additional rate cuts in the U.S. where the
speculation about the March cut has started to attract some
attention," Saxo Bank's Hansen said.
However, "the dollar could strengthen even further which
slows gold's approach, but major central banks are most
certainly trying to do what they can to support the economies."
On the technical front, gold may retest a support at $1,639
per ounce, according to Reuters analyst Wang Tao.
Among other precious metals, palladium XPD= jumped 1.9% to
$2,677 per ounce.
Silver XAG= fell 1.3% to $18.37 an ounce, having touched
its highest since early September on Monday, while platinum
XPT= slid 1.1% to $952.42.

Gold technicals

PRECIOUS-Gold slides from 7-year high, coronavirus concerns persist

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email