Gold climbed over 1% to a more than one-week high on Thursday as worries over the global spread of the coronavirus spurred safe-haven flows and raised hopes of further monetary policy easing by major central banks.
Spot gold had gained 1.4% to $1,657.78 per ounce by 09:59 a.m. EST (1459 GMT). U.S. gold futures jumped 1% to $1,658.80.
“Clearly as the equity markets are under pressure and there are more concerns about the coronavirus, so obviously we are seeing money flowing out of riskier assets into safe havens like gold,” said David Meger, director of metals trading at High Ridge Futures.
“In addition, we continue to view gold as a quintessential hedge against a flood of global central bank liquidity. Gold continues to lead the charge and continues to be our favourite alternative investment out there.”
Equity markets tanked after California declared an emergency over the epidemic as the death toll rose in the United States.