LONDON: Gold prices eased to a near one-week low on Wednesday as investors’ risk appetite picked up on reports of a decline in new coronavirus cases, although concerns remained over the potential impact of the outbreak on the global economy.
Spot gold was down 0.1 per cent to $1,565.80 per ounce at 1254 GMT, having touched its lowest since Feb. 6 at $1,561.16 earlier. US gold futures were flat at $1,569.30.
Further weighing on gold, the US dollar held close to four-month highs, making assets priced in the US currency more expensive for holders of other currencies.
Gold, which is often used as insurance against economic risks, tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.
Among other precious metals, palladium slipped 0.5pc to $2,330.25 an ounce, silver fell 0.4pc to $17.56, having earlier fallen to $17.44, a level last seen on February 5 and platinum shed 0.5pc to $963.75.
Published in Dawn, February 13th, 2020