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Gold futures traded slightly lower Wednesday, lacking support as global equities point higher and worries fade about an outbreak of a potentially deadly virus in China, robbing the yellow metal of haven appeal.
Gold for February delivery GCG20, +0.03% on Comex was down $2.50, or 0.2%, at $1,55.40 an ounce, while March silver SIH20, +0.57% was up less than 0.1% at $17.81 an ounce.
“The financial markets no longer appear to be viewing the coronavirus in China with such grave concern…The Chinese authorities announced measures today that are intended to prevent the further spread of the virus. Apparently this has somewhat reassured the markets,” said Daniel Briesemann, analyst at Commerzbank, in a note.
Major stock indexes finished lower on Tuesday, pulling back from records seen last week, after a U.S. citizen who had recently returned from a trip to central China was diagnosed with the new virus that’s raised worries over a potential pandemic. However, analysts said recent updates from Chinese authorities had provided investors with some comfort the outbreak will be contained and a pandemic which could slow economic growth will be avoided.
Stock-index futures pointed to a slightly higher start for Wall Street on Wednesday, joining a positive tone for global equities.
Read: China’s new coronavirus cases rise sharply to 400, as death toll rises to 9
Also see: Why the mysterious coronavirus from China has spread so quickly
President Donald Trump on Wednesday said he had been briefed by the Centers for Disease Control and Prevention and that the U.S. had nothing to fear from the virus outbreak. “It’s one person coming in from China. We have it under control. It’s going to be just fine,” he told CNBC in Davos, Switzerland.
In other metals trading, March palladium PAH20, +3.19% rose 2.4% to $2,284 an ounce, with the precious metal up nearly 20% so far this year. Meanwhile, April platinum PLJ20, +0.83% was up 0.5% at $1,011.40 an ounce. March copper HGH20, -0.52% shed 0.5% to $2.784 a pound.
