Gold Surges To 7-year High As Virus Spreads

Gold prices rose sharply on Friday to hit their highest level in seven years as worries about the coronavirus spreading beyond China dented investors’ appetite for riskier assets.

In a note for G20 finance ministers and central bankers, the International Monetary Fund warned that the outbreak was a stark reminder of how unforeseen events could threaten a fragile recovery.

Spot gold climbed 0.9 percent to $1,633.68 per ounce, while U.S. gold futures were up 1 percent at $1,636.90.

China reported an uptick in new coronavirus cases, raising fresh concerns over the global growth outlook.

The National Health Commission reported a total of 75,465 confirmed cases and 2,236 deaths on the mainland by the end of Thursday.

The government reported 1,109 new confirmed cases of the disease during the same period, sharply up from 349 cases the previous day, reversing three days of decline.

While the number of deaths is higher than the previous day, the rate of new infections has declined, raising hopes that Beijing’s epidemic control efforts were working.

China’s commerce ministry said January and February exports and imports will be hit by the epidemic that has severely disrupted the world’s second-largest economy.

Elsewhere, South Korea declared a “special management zone” around a southeastern city as health authorities reported 52 new cases of the illness, raising the tally in the country to 156.

The mayor of the southeastern city of Daegu urged the city’s 2.5 million people to stay home and wear masks even indoors if possible.

23 people were confirmed to be infected with the new coronavirus in Japan on Thursday, bringing the total number of reported infections to 728.

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