Gold prices rose more than 1% on Friday to its highest in seven years as the spread of the coronavirus intensified concerns about its impact on economic activity and global growth, increasing the metal’s safe-haven appeal.
Spot gold rose 1.55% to $1,644.50 U.S. per ounce, after hitting its highest since Feb.14, 2013 at $1,635.98 U.S. earlier in the session. U.S. gold futures jumped 1.65% to $1,647.20 U.S.
Gold prices have risen 3% so far this week and are set to record their biggest weekly percentage gain since early August.
The virus outbreak is having an influence on economic activity, and the markets are focusing on the increase in number of new infected cases, he added.
South Korea has reported 52 new cases, taking the national total to 156, while Japan reported the first fatalities from a cruise ship which accounted for the biggest proportion of infections outside China.
Meanwhile, China reported an uptick in new cases of coronavirus, boosted by more than 200 people testing positive for the disease in two prisons outside of Hubei province, the epicenter of the outbreak.
The increase in number of new cases hit stock markets around across the world, putting them on course for their worst week in four.
Elsewhere, palladium rose 0.9% to $2,712.995 U.S. an ounce and the metal was up about 11% this week.
The autocatalyst metal had reportedly risen to a record high of $2,841.54 U.S. earlier in the week on supply concerns.
Silver was up 0.9% at $18.52 U.S. and was set to register its strongest week since end-August. Platinum edged up 0.6% to $983.78 U.S. and was on track to post a weekly gain.
