Gold heads for the third monthly rise due to Corona Virus

Gold prices fell yesterday, as investors sold the yellow metal to take profits from a jump of 1% in the previous session, but gold received some support with growing concerns about the rapid spread of the Corona virus outbreak, raising expectations for major central banks to cut interest rates.

Meanwhile, palladium was down 5% on profit-taking sales after the metal used to catalyze the auto industry rose to an all-time high last Thursday.

Gold fell in immediate transactions 0.4% to 1635.39 dollars an ounce (ounce). Gold added about 3% since the beginning of this month, achieving gains for the third month in a row.

And US gold futures fell 0.3% to $ 1637 an ounce.

"The virus is becoming much more dangerous, people are worried that some additional stimulus measures may be needed, and that means lowering (interest) rates," said John Sharma, an economist at the National Bank of Australia, adding that high prices have led to some profit-taking. .

Governments from Iran to Australia closed schools, canceled major events, stored medical supplies and prepared for emergency responses with the announcement of new infections worldwide that exceed those on the Chinese mainland.

Global stock markets are heading for the worst weekly performance since the height of the global financial crisis in 2008, as investors prepare for the impact of the virus on economic growth.

Meanwhile, speculation has increased that the Federal Reserve will cut interest rates next month to protect the economy from the impact of the virus.

Sources:

Market Watch

CNBC