Gold
rose during Monday’s trading to reach a high of more than two weeks, amid fears
that the coronavirus would harm the global economy, which has turned investors
towards safe assets and shifted away from risky ones.

As
of 08:17 GMT, spot gold hovered around $1,577.60 an ounce, where the precious
metal hit the highest level today at $1,588.43, noting that the yellow metal
opened the new the week on an upside gap of nearly $10.

The
rise in gold was due to increased concerns about the coronavirus, after the health
committee of China’s Hubei Province said in a statement on its website that the
number of deaths from the new Coronavirus in the region has increased to 76,
and the number of confirmed cases of the virus has increased to 1,423 by the end
of January 26.

Chinese
President Xi Jinping said on Saturday that the new Coronavirus was spreading
rapidly and that his country was facing a “serious situation”.

The
Chinese media also reported that the authorities imposed restrictions on the
entry and exit of cars to downtown Wuhan, the epicenter of the outbreak, and
China intensified on Friday its efforts to contain the spread of the new
coronavirus.

In
the same context, the World Health Organization (WHO) has described coronavirus
as “a wide range of viruses that cause disease ranging from common colds
to more severe diseases”.

As
for other precious metals, silver rose 0.39 percent to $18.18 an ounce, after
reaching its highest level since January 9 at $18.27 earlier in the session.

Palladium
slumped by 1.42 percent to trade at $2,283 an ounce, while platinum goes in the
same direction by falling about 1.18 percent at $998.65.

The
dollar index, which tracks the performance of the U.S. currency against a
basket of six major currencies, rose 0.01 percent at 97.65.

Later in the week,
eyes will focus on the interest rate decision by the Federal Reserve and the
Bank of England.

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