NEW YORK (Dispatches) - Gold climbed towards a seven-year peak on Wednesday as concerns over the global economic impact of the coronavirus epidemic boosted safe-haven interest, while palladium resumed its record rally driven by concerns over a supply shortfall.
Spot gold rose 0.5% to $1,609.63 per ounce. The metal jumped to $1,610.72 earlier, its highest since Jan. 8, when gold hit its highest in nearly 7 years. U.S. gold futures rose 0.6% to $1,612.90.
"We’re still concerned that the recovery of economic activity might take a little bit longer in China,” Julius Baer analyst Carsten Menke said.
"On the ground, the impact seems to be stronger than what’s currently reflected in the stock markets, gold investors are taking a closer look at these developments that’s why prices are higher.”
Bullion held firm even as European shares hit a fresh record high on a decline in new cases of coronavirus in China, and as the dollar rose to a more than four-month high against rivals.