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The irritating coronavirus outbreak is eroding risk-on sentiments for market members. Thus, increased demand for safe-haven property lifted gold to a seven-year high of $1,688.66 earlier this week. The yellow steel has tentatively gained more than 3% up to now in February. Furthermore, due to rising demand, holdings on this planet’s largest gold-backed ETF, SPDR Gold Belief ETF (GLD) rose to the best degree since November 2016 to 940.09 tonnes on Feb 25 (learn: How to Play Gold Rally With ETFs).
Accordingly, on aggravating coronavirus considerations, depressed actual charges and uncertainty surrounding the U.S. elections this yr, Goldman Sachs GS has raised its gold forecast to $1,800 per ounce. On this regard, the global investment bank has mentioned, “within the occasion that the virus impact spreads to Q2, we may see gold prime $1,800/ouncesalready on a 3-month foundation.”
Elements Driving the Upside
The spike within the variety of contaminated instances outdoors mainland China has made the outbreak a critical menace to world financial progress. South Korea is grappling with the…