By Geoffrey Smith
By Geoffrey Smith
Investing.com — Gold prices rose on Thursday as world markets moved sharply into risk-off mode in response to a big upward revision in the number of Covid-19 cases and fatalities.
The Chinese authorities revised their estimate of confirmed Covid-19 cases up by one-third to just under 600,000, while adding some 250 to the official death toll. The Communist Party also fired its top officials in Wuhan, and in the surrounding region of Hubei, in response to local anger at their handling of the outbreak.
Outside of China, the virus continued to ripple through daily life with growing visibility: the world’s biggest telecoms conference in Barcelona was canceled due to contagion fears, while Japan recorded its first death from the disease.
By 11:12 AM ET (1612 GMT), for delivery on the Comex exchange were up 0.4% at $1,577.75 a troy ounce, having failed to make much progress beyond the $1,580 mark that has been the upper limit of the recent range. was up 0.6% at $1,575.08.
Elsewhere, were up 0.9% at $17.65 an ounce, while platinum was up 0.9% at $975.60.
The general risk-off move was also reflected in government bond yields, which fell by between 1 and 2 basis points along the curve in the U.S. and as much as 3 basis points in the euro zone.
Bloomberg cited European Central Bank Chief Economist Philip Lane as saying that the eurozone economy could face a “pretty serious short-term hit”, but the European Commission left its growth forecasts for this year and next year unchanged, despite growing unease about the collapse in industrial production at the end of 2019.
Kristalina Georgieva, the managing director of the International Monetary Fund, had said in an interview late Wednesday that she expects the Chinese economy to experience a “v-shaped” recovery, with a robust and quick rebound after an inevitable hit to first-quarter growth.
On an otherwise quiet day for economic data, on which U.S. consumer inflation figures came in largely as expected, the Bank of Mexico will decide later whether to join the growing ranks of emerging central banks to cut interest rates to offset the slowdown emanating from China. Banxico has cut its key rate at each of the last four policy meetings, but that hasn’t stopped the peso hitting its highest level in 15 months against the dollar – in sharp contrast to most emerging currencies.
futures, which move in line with expectations of industrial activity, bucked the trend with a 0.7% rise to a three-week high of $2.62 a pound.
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.