Live Spot Gold
SPOT MARKET IS OPEN
closes in 5 hrs. 54 mins.Jan 31, 2020 11:06 NY Time
| Bid/Ask | 1585.80 / 1586.80 | |
| Low/High | 1571.10 / 1589.90 | |
| Change | +12.00 | +0.76% |
| 30daychg | +69.00 | +4.55% |
| 1yearchg | +265.10 | +20.07% |
| Alerts Charts |
Silver Price & PGMs
Jan 31, 2020 11:06 NY TimeKitco 10AM Silver Fix
| Silver | 18.01 | +0.21 |
| Platinum | 959.00 | -18.00 |
| Palladium | 2208.00 | -6.00 |
| Rhodium | 9200.00 | 0.00 |
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(Kitco, Fri. Jan. 31st, 2020) – Coronavirus fears hit the market the hardest this week, as the outbreak reached nearly 10,000 cases worldwide and continued to spread across multiple countries.
On Friday, the death toll climbed to at least 213 in China, with the majority of cases concentrated in mainland China.
The week began with the biggest equities’ selloff since October as all major stock indexes plunged. This was followed by a recovery throughout the week. On Friday, stocks one again fell with the Dow plunging 300 points.
Gold, on the other hand, reached a three-week peak on Monday, but then retreated. Throughout the week gold was holding well above $1,560 with February Comex gold futures last at $1,582.50, down 0.06% on the day.
With some risk sentiment back in the marketplace, lots of uncertainty remains.
Media outlets are keeping live updates of the spread of the coronavirus as well as its broader impact on the economy.
Sets of LIVE UPDATES to follow:
The Washington Post’s live updates
In the latest news, Singapore banned entry to all Chinese visitros.
England and Russia both confirmed their first two cases of the coronavirus.
The U.S. raised its travel warning advisory for China to level 4. “Travelers should be prepared for travel restrictions to be put into effect with little or no advance notice. Commercial carriers have reduced or suspended routes to and from China,” the notice said.
On Thursday, the World Health Organization (WHO) declared the coronavirus a global health emergency. “Over the past few weeks we have witnessed the emergence of a previously unknown pathogen that has [resulted in] an unprecedented outbreak,” WHO Director-General Tedros Adhanom Ghebreyesus said. “We must act together now to limit the spread.”
??BREAKING??
“For all of these reasons, I am declaring a public health emergency of international concern over the global outbreak of #2019nCoV.”-@DrTedros— World Health Organization (WHO) (@WHO) January 30, 2020
Earlier in the day, the Centers for Disease Control and Prevention (CDC) confirmed first person-to-person transmission of the coronavirus in the U.S.
Russia said it plans to close its border with China. It already announced that it will limit its rail service to and from China starting from January 31. Only direct trains travelling between Moscow and Beijing will continue to operate, Deputy Prime Minister Tatiana Golikova said on Wednesday. Russia also closed all foot and car traffic at its land border with China and the closure will be extended past February 2.
Countries including the U.S., Canada, France, Australia, Italy, Japan, Germany, Indonesia, South Korea, and Singapore are trying to evacuate its citizens from Wuhan. Nearly 200 U.S. citizens have already been evacuated and were placed in isolation for at least 72 hours.
Around 6,000 tourists are in lockdown on an Italian cruiseship over fears that one of the passengers is infected with the coronavirus.
Other latest updates include a number of airlines, including Air Canada and British Airways, canceling all flights to and from China. Also, General Motors said it is extending its manufacturing shutdown in China to February 9. Alphabet’s Google and Sweden’s IKEA announced that they are temporarily shutting down their China offices.
Despite its quick infection rate, the coronavirus’s impact on worldwide health is still relatively minor compared to seasonal influenza.
The Center for Disease Control (CDC) estimated that in the U.S. alone there have been between 140,000 and 250,000 hospitalizations from the flu season between October 1 and January 18. Deaths from the flu are estimated to have been between 8,200 to 20,000 lives.
Here is what analysts are saying:
Analysts are not yet too worried about the coronavirus impact on the markets despite many companies closing shop temporary in China as well as airlines canceling flights to China amid the outbreak.
The biggest impact will, of course, be on the Chinese economy, said Morgan Stanley in a report published Wednesday.
“Travel, entertainment, and retail could be most affected, and extended factory suspension could weigh on industrial production and trade. If the Coronavirus peaks in Feb/Mar, China’s growth could be dragged by 0.5-1ppt in Q1 from the Coronavirus, but recovery beyond Q1 could be intact amid restocking demand and counter-cyclical policy. If the Coronavirus peaks in 3-4 months, it could drag 1H growth by 0.6-1.1ppt, but partly offset by stronger policy support,” according to the report.
Global growth recovery, however, is unlikely to be derailed by the coronavirus outbreak, Morgan Stanley added.
“There should be some adverse impact to 1Q20 global growth. But as the underlying drivers of the global recovery remain intact, growth should get back onto the recovery path once the effects of disruption fade. If the situation begins to normalize in two months’ time, we think global growth could be impacted by about 0.15-0.3ppt in 1Q20. If the situation extends to 3-4 months, global growth could be further impacted by about 0.2-0.4ppt in 2Q20. Major central banks will likely stay on a dovish holding pattern,” the report pointed out.
When gauging economic fallout from the virus each country’s exposure to China will be very important, said ING.
“While the fallout on the economic picture is still unclear, we see a key risk for EM sovereigns with weaker fiscal and external balance sheets as well as those more exposed to a slowdown in China,” ING wrote on Wednesday.
Markets could be overreacting at this point, warned Capital Economics.
“A sharp fall in bond yields triggered by growing concerns about the coronavirus outbreak means that the U.S. yield curve is close to inverting again. But in our view, investors anticipating further easing from the Fed are probably jumping the gun,” Capital Economics wrote on Wednesday.
“We continue to think that unless the fallout from the virus outbreak escalates significantly, the Fed will remain on hold this year. That in turn informs our forecast that the 10-year Treasury yield will edge back up to 2% by the end of the year, and that the steepening of the curve will resume,” the note added.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com