Coronavirus outbreak increases value of gold
The spot price of gold as of Monday (January 27) rose for the fourth consecutive day to US$1,588 per ounce, the highest price in almost three weeks, the Hua Seng Heng Gold Futures said.
SPRD fund sold 1.17 tonnes of gold on Monday.
Gold price on Tuesday (January 28) was predicted to swing in a narrow range while investors monitored the coronavirus situation closely.
The resistance to gold price was at $1,590 per ounce and $1,600 per ounce, and support was at $1,560 per ounce and $1,550 per ounce.
According to the Gold Traders Association, the price of gold bar on Tuesday was Bt22,900 per baht weight for buying and Bt23,000 per baht weight for selling.
Meanwhile, the price of gold ornaments was Bt22,482.28 per baht weight for buying and Bt23,500 per baht weight for selling.
The Wuhan coronavirus outbreak has caused the US and general stock markets to slide sharply, increasing the demand for gold as a safe-haven asset.
China’s government has prohibited Chinese tours from overseas travels to prevent the coronavirus spreading, and also extended the Chinese New Year holidays from January 30 to February 2.
