USD\EUR 0.9066
CNY\EUR 0.1278
CHF\EUR 0.9415
CAD\EUR 0.6449
AUD\EUR 0.5499
EUR\USD 1.1030
CNY\USD 0.1410
CHF\USD 1.0384
CAD\USD 0.7113
AUD\USD 0.6065

Bannockburn: ‘gold is on fire’ as virus worries persist

Gold is “on fire,” hot enough to hit a fresh seven-year high as investor enthusiasm for other markets is dented by the continuing spread of the Covid-19 virus outside of China, said Marc Chandler, managing director with Bannockburn Global Forex, LLC. While the virus first took hold in China, news reports say South Korea now has 52 new cases, and the virus is showing up in other countries, including Iran and Italy. This has prompted worries that the outbreak will hurt global economic growth. U.S. stock-index futures have a weaker tone ahead of the open on Wall Street, and crude oil is also softer. “Gold is on fire,” Chandler said. “It is at new seven-year highs near $1,635 to bring this week’s gain to about $50, a little more than 3%.” Since Chandler’s comments, gold has risen even more. As of 8:23 a.m. EST, spot metal was up $22.90 to $1,642.10 an ounce

By Allen Sykora of Kitco News; asykora@kitco.com

Commerzbank: gold hits record high vs. euro; silver also rising

Friday February 21, 2020 08:36

Gold remains underpinned by the coronavirus outbreak, hitting a fresh record high against the euro, with silver is following gold higher, said Daniel Briesemann, analyst with Commerzbank. While China appears to be making progress containing the Covid-19 virus, the disease is spreading elsewhere, depressing other economies besides China’s, Briesemann said. China’s central bank has loosened monetary policy, and there are worries about Chinese companies increasing already-high debt levels. “Gold remains in good demand against this backdrop, and is continuing to make robust gains,” Briesemann said, noting the metal hit a seven-year high in U.S. dollar terms. As of an early-morning research note, he added: “In euro terms, gold continues to surge from one record to the next, and has risen to €1,515 per troy ounce.” As of 8:21 a.m. EST, spot metal was up $22 to $1,641.20 an ounce, while silver climbed 21 cents to $18.54. “Silver has been pulled up by gold this week, and has even achieved slightly disproportional gains,” Briesemann said. “Having said that, the gold/silver ratio remains high at 88.”

By Allen Sykora of Kitco News; asykora@kitco.com

TDS: expectations for dovish Fed policy add to gold’s rally

Friday February 21, 2020 08:36

Gold’s huge rally is being fueled by more than worries about the coronavirus; expected soft Federal Reserve monetary policy is also playing a role, said TD Securities. The metal is continuing its charge above $1,600 an ounce this week. “A portion of the recent surge can surely be attributed to a safe-haven bid, but risk markets have not experienced the pain that typically coincides with a haven bid, suggesting there is more to this rally in safe assets than just the uncertainty-driven bid,” TDS said. “Gold and rates appear to be telling the Fed they need to cut once again if their inflation goal is to be reached. Indeed, the structural bid in gold remains driven by real rate suppression from global central banks and the general willingness to let inflation overshoot for some time, should it be achieved.”

By Allen Sykora of Kitco News; asykora@kitco.com

SP Angel: gold prices having best week in six months

Friday February 21, 2020 08:36

SP Angel pointed out that gold prices are having their best week in half of a year, as safe-haven demand continues on worries that the coronavirus will hurt the global economy. Around 8:10 a.m. EST, Comex April gold was up $20.80 for the day to $1,641.30 an ounce and had gained $52.50, or 3.3%, for the week so far. SP Angel said “the metal is set for its best week in over six months.” Demand rose after a spike in coronavirus cases, with South Korea reporting 52 new cases and Japan reporting the first deaths aboard the Diamond Princess cruise ship, SP Angel said.