Commodities News

Traders Move to Gold After U.S. Travel Ban, Metal Inches Up

Gold edged up Thursday on worries in regards to the economic impact of the coronavirus epidemic as the U.S. suspended travel from virus-hit Europe, though features had been capped as merchants lined margin calls after a plunge in equities.

Traders Move to Gold After U.S. Travel Ban, Metal Inches Up

Spot gold climbed 0.2% to $1,637.33 per ounce. U.S. gold futures dropped 0.3% to $1,637.20.

The travel ban “is a big shock to the market” and shows that traders are yet to see the full monetary fallout from the coronavirus pandemic, stated IG Markets analyst Kyle Rodda.

On the other side, traders are selling gold to fund margin calls, providing a headwind for the metal, Rodda added.

U.S. Prez Trump Wednesday declared the suspension of all travel from Europe, except the U.K., to the U.S. for 30 days, resulting in a sell-off in global stock markets and the greenback.

The World Health Organization (WHO) Wednesday described the new coronavirus as a pandemic, with over 119,100 individuals infected globally.

World central banks have taken steps to shield their economies from the pandemic, with the Bank of England (BoE) being the latest to cut rates of interest Wednesday.

The European Central Bank is predicted to follow suit when it holds its meeting later in the day.

Danielle Hollman

By Danielle Hollman

Danielle is a Market expert with vast experience in commodities. She also has expertise in marketing and international business communication in her career portfolio. She has worked with several entrepreneurs, financial services firms, and media houses. Danielle joined FBI Market News in 2018. Now, she is leading the Commodity column.