Warning: file_exists(): File name is longer than the maximum allowed path length on this platform (260): C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br/wp-content/cache/supercache/www.forexbr.com.br/2020/03/04/metals-stocks-gold-prices-end-at-highest-in-over-a-week-as-coronavirus-spread-fuels-safe-haven-buying/meta-wp-cache-1ae5fb0ad3c922cb1954d4c4cbbe7314.php in C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br\wp-content\plugins\wp-super-cache\wp-cache-phase2.php on line 71 Metals Stocks: Gold prices end at highest in over a week as coronavirus spread fuels safe-haven buying – Forex Brasil

Metals Stocks: Gold prices end at highest in over a week as coronavirus spread fuels safe-haven buying

“Gold looks like one of the most attractive assets in this global environment, with US rates likely heading towards the zero lower bound,” wrote Stephen Innes, chief market strategist at AxiCorp, in a Thursday research note, referring to a situation where the short-term nominal interest rate is at or near 0%.

“This should mean that both retail and institutional investors, portfolio allocations in gold will rise exponentially,” Innes said.

Gold for April delivery GCJ20, +1.75% on Comex rose $25, or 1.5%, to settle at $1,668 an ounce. That was the highest most-active contract finish since Feb. 24, according to FactSet data. May silver SIK20, +1.12% added 14.7 cents, or nearly 0.9%, to trade at $17.393 an ounce.

Also read:The Fed’s inter-meeting rate cut was a surprise, but gold’s rally was not

“Recent history shows that some days traders and investors are less concerned about the coronavirus outbreak, and then the next day they are more concerned.” said Jim Wyckoff, senior analyst at Kitco.com, in a daily note. “It’s now looking more likely that the event will not be a short-term situation, but instead one that will play out over several months, or longer.”

“Look for continued vacillating markets as the Covid-19 situation plays out,” he wrote.

ReadCOVID-19 case tally: 96,888 cases, 3,303 deaths

The benchmark U.S. 10-year Treasury note yield TMUBMUSD10Y, 0.932% fell below to a record low under 0.90%. “This has prompted keen concern among long-term market watchers that a U.S. and /or global economic recession looms, including the prospect of debilitating consumer and commercial price deflation,” wrote Wyckoff

“All of the above are bearish for stocks and most commodities, and bullish for safe-haven assets like gold, the U.S. dollar and U.S. Treasuries,” he said. As measured by the ICE U.S. Dollar Index DXY, -0.51%, the buck was trading near a two-month low at 96.83.

Meanwhile the Dow Jones Industrial Average DJIA, -3.81% and the S&P 500 index SPX, -3.66% traded sharply lower Thursday as gold futures settled.

Among other metals, May copper HGK20, -0.87% edged down by 0.5% to $2.573 a pound and April platinum PLJ20, -1.02% shed 1.1% to $865.70 an ounce, but June palladium PAM20, +3.14% added 3.5% to $2,469.40 an ounce.

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