Gold prices edged higher on Friday and were set to post their biggest monthly gain in the last five months, as the coronavirus epidemic fueled economic slowdown concerns, despite the World Health Organization’s confidence that the outbreak could be controlled.
Spot gold rose 0.2% to $1,576.28 U.S. per ounce. The shiny yellow metal has gained 3.9% so far this month, on course for its best month since August. U.S. gold futures declined 0.6% to $1,580.10.
The WHO on Thursday declared the coronavirus outbreak a global emergency, however, it opposed restrictions on travel or trade with China and said the actions taken by Beijing can, as the body puts it, "reverse the tide".
The new coronavirus has claimed 213 lives so far in China and has spread to at least 22 countries, while paralyzing many provinces in the world’s second-largest economy with lockdowns, travel restrictions and closed businesses.
Surveys showed steady Chinese factory activity and firm services this month, though this was likely before the virus took full hold.
Gold is considered a safe haven in times of political and economic uncertainty.
Among other metals, palladium lost 0.4% to $2,302 an ounce. Prices were set to gain 18% this month, the best since November 2016, but were down 5.5% this week.
Silver rose 0.2% to $17.86 U.S. and was down 1.1% for the week, its worst since the week ended Dec. 6. Platinum shed 0.1% to $976.63 U.S., and was on track to decline 2.5% for the week, its steepest since early November.
