Gold Futures Settle At Near 7-year High

Gold prices rose sharply on Tuesday on safe-haven appeal amid renewed concerns about the impact of the coronavirus outbreak on the global economy and corporate earnings.

Disappointing earnings news from Walmart also weighed on stocks and prompted investors to seek the safe haven asset.

The Chinese central bank’s recent move to cut lending rates to boost growth contributed as well to gold’s rise.

The dollar gained as well thanks to its safe-haven appeal. The dollar index advanced to 99.47, and was last seen at 99.40, up 0.4% from previous close.

Gold futures for April ended up $17.20, or about 1.1%, at $1,603.60 an ounce, the highest settlement since end March 2013.

Silver futures for March ended up $0.416 at $18.150 an ounce, while Copper futures for March settled at $2.6040 per pound, up $0.0045 from previous close.

Apple Inc said it expects to miss its forecast for second quarter revenue of $63 billion to $67 billion due to lower iPhone production and weak Chinese demand as a result of the coronavirus outbreak.

According to a report released by the Federal Reserve Bank of New York, growth in New York manufacturing activity saw a notable acceleration in the month of February.

The New York Fed said its general business conditions index climbed to 12.9 in February from 4.8 in January, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to inch up to 5.0.

The bigger than expected increase by the headline index came as the new orders index shot up 16 points to 22.1 and the shipments index climbed to 18.9.

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