Coronavirus Fears Spike Gold Price

As this weekend comes to a close and the workweek resumes, gold's market price has jumped to its highest since 2013. The confirmed spread of coronavirus in South Korea, Italy, and Iran directly influenced this spike. South Korea has the worst outbreak in Asia outside of China. After them, Italy faces the largest number of confirmed cases outside of Asia. Lastly, Iran is currently facing a surge of cases. 

Coronavirus and gold: what’s the connection?

Gold prices have jumped up 2% today and currently is $1,680 per ounce. This is the highest level since February 2013. Gold has also increased by more than 10% since the beginning of 2020 and may break past $1700 an ounce. As fears increase regarding the impact of the coronavirus on the stock market, investors flock to safe-haven assets and sell stock to purchase more gold in case of a steep economic decline. This demand increase has a direct influence on gold price: the more concerns over economic decline, the more investors tend to favor bullion purchases as a safety net.

Global Economic Health

Michael McCarthy, Chief Marketing Specialist at CMC Market, states that shares are being sold to purchase more safe-haven assets. This will affect the global economy by “seeing a lower interest rate environment for longer”. This, in turn, reduces the opportunity cost of holding nonyielding bullion. When there are financial uncertainty and low-interest rates, a boost in the price of gold will be seen.

Sell to us!

With the current market fluctuations, now could be a good time to sell your gold bullion. If you're looking for a reputable dealer with top ratings and a great reputation in the industry, check us out! We buy a variety of precious metals, in addition to diamonds and scrap metal. Our team is ready to assist you with selling your precious metals to Bullion Exchanges, your precious metals dealer in midtown Manhattan.

• Call us - at (800) 852-6884, or request a callback.
• Lock In Price - Prices are locked in with your price quote and a confirmation email.
• Ship Us Your Items - Follow the shipping instructions listed in the confirmation email.
• Get Paid - Once your shipment is received and verified, we will release your payment.

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