Gold prices rise due to corona spread, hopes of interest rate cuts

Gold prices rose on Thursday as the rapid spread of coronavirus outside China fuelled demand for safe-haven assets and boosted interest-rate cuts from major central banks, while palladium reached a record high due to fears of a shortage of supply.

The spot price of gold was up 0.8 percent to $1,651.95 an ounce. Prices rose more than 1 percent in Wednesday’s trading but closed at just 0.3 percent. U.S. gold futures rose 0.7 percent to $1,654.

In other precious metals, palladium fell 0.1 percent to $2,787.64 an ounce, after reaching a record high of $2,847.50 earlier in the session.

Platinum rose 1.2 percent to $921.62, after touching its lowest level since December.

Silver rose 1.3 percent to $18.12 an ounce, after recording the lowest price in a week during the previous session.