Gold prices edged higher on Monday as investors sought safe havens, with fears about the economic damage from the coronavirus intensifying after governments extended lockdowns to curtail its spread. Spot gold was up 0.3% at $1,621.60 per ounce by 0941 GMT, while US gold futures gained 0.3% to $1,629.30.
“Volatility due to covid-19 is back in the markets. Gold profited a bit from safe-haven buying after stock markets dropped in Europe,” said Quantitative Commodity Research analyst Peter Fertig.
“In the near term, gold should be supported by safe-haven buying, but if stock markets drop deeper, selling of gold to meet margin calls could re-emerge.”
Investors’ appetite for riskier assets remained weak as fears mounted that the global coronavirus shutdowns could last for months, sending European shares lower for a second straight session and oil prices to their weakest in 17 years.
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