Gold hits 2-week high on safe-haven demand

Tuesday,   21-Jan-2020   09:15 AM (IST)

Gold prices rose to a near two-week high on Tuesday as investors sought refuge in the safe-haven metal, amid concerns of a virus outbreak in China and tensions in the Middle East, while traders awaited a Bank of Japan policy decision. Spot gold rose 0.3% to $1,565.36 per ounce by 0147 GMT, prices touched their highest since Jan. 8 at $1,567.19 earlier in the session. U.S. gold futures were up 0.4% at $1,566.00. An outbreak of a new coronavirus has spread to more Chinese cities, including the capital Beijing and Shanghai, authorities said on Monday, and a fourth case has been reported beyond China’s borders. Three Katyusha rockets fell on Tuesday inside Baghdad’s Green Zone which houses government buildings and foreign missions, two of which landed near the U.S. embassy. The Bank of Japan is set to keep monetary policy steady and signal its cautious optimism over the global outlook on Tuesday, reinforcing market expectations that the rising cost of prolonged easing will keep the hurdle for further stimulus high. Global growth appears to have bottomed out but there is no rebound in sight and risks ranging from trade tensions to climate shocks makes the outlook uncertain, a top International Monetary Fund official said on Monday. Asian shares got off to a cautious start after the IMF shaved its outlook for world growth this year. Investors also remained focused on the developments in the World Economic Forum in Davos this week. Russia’s gold reserves stood at 73.0 million troy ounces as of the start of January, the central bank said on Monday. Palladium jumped 0.8% to $2,519.37 an ounce. The auto-catalyst metal hit a record high of $2,582.19 in the previous session.