Home » Markets » Gold spikes to 7-year high, 10-year yield nears record low as coronavirus spreads
Gold spikes to 7-year high, 10-year yield nears record low as coronavirus spreads
‘Dr. Doom’ economist: Coronavirus will have significant impact on Chinese economy
NYU economics professor Nouriel Roubini, who has earned the nickname Dr. Doom, shares his insights on coronavirus, U.S.-China trade and more.
Investors plowed into safe-haven assets Monday morning as the spreading coronavirus caused investors to dump stocks and move into the safety of gold and U.S. Treasurys.
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The buying ran gold to a seven-year high and dropped the 10-year yield within a few basis points of its record low as global equity markets were roiled after South Korea, Italy and Iran all reported a surge in the number of new coronavirus cases.
"The expectation had been this would be a relatively short-lived and it would be a V-shaped recovery off whatever happened first quarter, second quarter, but second half we kind of claw it all back and it would all be good. The view was also that we'd see things relatively contained within China," Keith Banks, head of investment solutions at Bank of America, told FOX Business’ Maria Bartiromo on Monday.
"Obviously not the case. As a result I think now investors are starting to think it won't be a V-shaped recovery, but maybe more of a U-shaped recovery, and that has implications for growth, that has implications for inflation, that has implications for rates, and it has implications for earnings."