Gold hits seven-year high

February 22, 2020

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LONDON: Gold rose 1 per cent on Friday to its highest in seven years as the spread of the coronavirus intensified concerns about its impact on economic activity and global growth, increasing the metal’s safe-haven appeal.

Spot gold rose 1.1pc to $1,636.60 per ounce as of 1256 GMT, after hitting its highest since Feb.14, 2013 at $1,636.66 earlier this session. US gold futures jumped 1.2pc to $1,639.60.

Bullion has risen 3.3pc so far this week, on track for its best week since early August.

“There is a rise in risk aversion again due to fears that the cononavirus will spread further. The virus poses a major risk for the global economy,” Commerzbank analyst Carsten Fritsch said.

Silver was up 1pc at $18.53 and was set to register its strongest week since end-August. Platinum edged up 0.6pc to $983.86 and was on track to post a weekly gain.

Published in Dawn, February 22nd, 2020