Gold prices touch $1700 per ounce for the first time in 7 years

On Monday, for the first since late 2012, gold prices surged past $1,700 per ounce levels following a widening China’s coronavirus outbreak worldwide even as crude oil prices along with equities touched new lows as investors scurried for safe havens.

The following are the gold fundamentals in bullet points:

  • As of 0054GMT Spot gold shot up by 1.5% to $1,699.20 per ounce. In December 2012, it touched its high of $1,702.45 per ounce.
  • U.S. gold futures GCv1 shot up by 1.6% to $1,699.70 per ounce.
  • Asian markets turned bearish with investors flocking to bonds to hedge the economic shock of China’s coronavirus.
  • Oil prices fells by 20% after Saudi Arabia slashed its official selling price.
  • The price of futures contracts for the S&P 500 index, a Wall Street benchmark, fell more than 4% on Sunday after off-hours trading for U.S. equity markets resumed.
  • With investors flocking to safe haven currencies, the Japanese yen jumped to a more than three-year high against the dollar; the U.S. benchmark 10-year Treasury bond yields fell to its nadir.

  • Chinese exports contracted sharply in the first two months of this year even as imports fell. The coronavirus which began in Wuhan has caused massive economic disruptions to business operations, and global supply chains. The cause of China’s coronavirus is yet to be known, although there are claims that it escaped from its level 4 biolab facility in Wuhan.

  • Palladium spot rates fell by 2.9% to $2,492.38 per ounce, while platinum spot prices were also down by 1.2% to $890.41.

  • Spot prices for Silver perked up by 0.3% to $17.37 per ounce.

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