Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts continue to surge higher as they extend Friday’s gain of 1.5 percent. The spot futures contract for the bullion is now trading near a seven year high as traders are parking money into safe haven asset classes.
Financial market participants are growing increasingly worried over the global economic damage that the fast spreading and deadly coronavirus will do.
The widely traded spot gold futures contract was up 1.3 percent, on Friday, to close at $1,640.50 per ounce. This is this spot contract’s highest price level since February 14, 2013. At last glance, during Monday’s Asian trade session, the spot contract was up over 0.98 percent.
The U.S. gold futures contract was up 1.4 percent on Friday to trade at $1,643.20 per ounce. This contract is trading higher during the Asian session as gains are extended.
The spot palladium contract was down 0.3 percent but gained ten percent last week. Prices are being supported by a shortage in supply and increase in demand.
Traders are spooked by Coronavirus News and Support Gold Prices
On Sunday. South Korea raised its threat level to the “highest level” over the spread of the coronavirus. The number of infected in South Korea spike higher to 750 cases. South Korea is now the largest concentration of those infected outside of China.
China also saw the number of those infected inch higher.
This news is weighing heavily on global equity futures as a risk-off sentiment is taking hold. Traders are looking for safe haven asset classes like the yellow metal, Swiss franc, Japanese yen and the U.S. dollar.
Traders watch U.S. Election News and Economic Data
Democratic runner for U.S. President Bernie Sanders is projected to win Nevada as he is fast becoming the Democratic front runner for that party’s nomination.
On the economic data front, U.S. business activity in both the manufacturing and services hit a wall in February. Companies are increasingly worried about the coronavirus outbreak. This was according to purchasing managers’ indices (PMI) data released on Friday.
If economic data continues to sour in the world’s largest economy, the Federal Reserve Board could shift dovish and towards a lower rate outlook to insulate the economy from slowing down. This will boost non-interest bearing assets like the yellow metal.
