Gold futures contracts inched higher during the early Asian trade session on Monday. Traders remain concerned over the lasting economic impact with the fast spreading and deadly Wuhan strain of the coronavirus.
These concerns outweighed solid economic data that showed the U.S. economy continues to add jobs. The non-farm payroll (NFP) was release on Friday and came in better than expected. However wage growth missed the mark and the labor participation rate fell. The unemployment rate also ticked higher.
A team of health experts, led by the World Health Organization has left for Beijing. They will try and help stem the coronavirus outbreak as the death toll spike over the weekend. This epidemic is now more deadly than the SARS outbreak and has claimed over 900 lives in China.
Asian stock mostly fell by noon time, Hong Kong time, as the rising death count is spooking traders. The dollar is trading near a four month high thanks to the NFP report. However, the coronavirus fears are capping gains.
As of 1 am GMT, the spot gold futures contract had added 0.1 percent to trade at $1,572.01 per ounce. The U.S. gold futures contract, for front month delivery, was up 0.3 percent to fetch $1,577.50 per ounce.
Gold Traders Look for Safe Haven as the Coronavirus Continues to Worry the Markets
Forex traders remain on edge over the coronavirus outbreak as more people have died and the infection continues to spread.
Today, millions of people were supposed to or are returning to work, after the Lunar New Year break. However, many white-collar workers stayed home as business remained closed.
Many Chinese cities look like ghost towns, and have been this way for two weeks. Traders are trying to gauge the economic damage and see how quick the world’s second largest economy can now recover.
The death toll from the coronavirus spiked high on Sunday and this outbreak has now killed more than the SARS epidemic. The number dead is now at 908 on mainland China. There have been, at the time of this report, 40,170 people infected cases around the world. Most of these cases are in China.