Gold futures contracts fell lower during the early Asian trade session on Wednesday. Traders are monitoring risk appetite and a possible global epidemic from China’s coronavirus as the first case has just been confirmed in the United States.
The toll from the coronavirus in China is now at six deaths. Yesterday, the first case was reported in the United States. This sent the financial markets sharply lower, overnight, as traders worried about the economic toll from the outbreak. Tourists have also canceled travel plans and global airports are increasing screening for the virus.
Traders are increasingly alarmed as hundreds of millions of citizens from China will travel for the Chinese Lunar New Year holiday.
As of 1:30 am GMT, the widely traded spot gold futures contract was down 0.3 percent to trade at $1,553.27 per ounce. Yesterday, the spot contract was trading near a two week high price point before shedding one percent.
U.S. gold futures, for front month delivery, also shed 0.3 percent to trade at $1,553.30.
Gold Traders Wait on the Bank of Canada as well as the Coronavirus
Traders are monitoring the outbreak of the coronavirus in China. This virus has just been confirmed in the United States, as the Center for Disease Control (CDC), says that the first patient is infected with the virus
On the economic calendar, the United States is scheduled to release existing home sales data.
The Bank of Canada will announce monetary policy and their rate decision, later today during the North American trade session. The BOC is also holding a press conference after the announcement. With that said, financial traders are expecting the BOC to stand firm with rates and their monetary policy.
Traders will look towards the bank’s press conference to see if the BOC is adopting a more of a dovish stance with future monetary policy. Canada is also releasing key inflation data with their consumer price index.