Edward Knight from Whitley Trading Looks at Gold

AUCKLAND, New Zealand - Feb. 24, 2020 - PRLog -- South Korea reported  new cases of the virus, taking the national total to 156, while Japan reported the first fatalities from a cruise ship that accounts for the biggest cluster of infections outside China.

"Main focus for gold seems to be the virus uncertainty ... and its spread across the world," said Edward Knight, a broker at Whitley Trading

"This is spreading some fear ... not very encouraging in terms of growth, investment, consumer and business confidence."

Further spread of the disease could derail a "highly fragile" projected recovery in the global economy in 2020, the International Monetary Fund said on Wednesday.

China cut its benchmark lending rate on Thursday to soften the virus' impact on its economy and is likely to roll out more measures.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.25% to 933.94 tonnes on Thursday, its highest since November 2016.

Spot gold may rise into a range of $1,639-$1,667 per ounce, said Edward Knight.

Elsewhere, palladium shed 0.1% to $2,687.22 an ounce. But the metal was up about 10% this week, set for its strongest week in more than a month.

The auto catalyst metal had risen to a record high of $2,841.54 earlier in the week on supply concerns.

"Low inventories from a structural market deficit and limited scope of a supply response should keep demand strong," the Whitley Trading analysts said in a note.

Spot gold rose 0.8% to $1,632.65 per ounce by 0845 GMT, after hitting its highest since Feb. 14, 2013 at $1,635.98 earlier in the session. For the week, prices have risen 3% so far and were set to post their biggest weekly percentage gain since Aug. 9. U.S. gold futures jumped 1% to $1,636.50. Silver was up 0.8% to $18.50 and was set to register its best week since week ended Aug. 30. Platinum edged higher by 0.1% to $978.49.

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