Hike in gold prices with corona-virus epidemia

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Coronavirus outbreak in china caused nervousness around the globe, it is not only wrecking the lives of people but also economies. China's economic growth in the last month was cut off by 5.6% while 0.1% global rate fell.

Recent cases in Iran, Afghanistan, Korea, Japan, and Italy have engendered a new wave of panic in the business world. Italy has shut down schools, universities, museums, and tourism which has slumped its economy.

The outbreak touching Europe raises more concern for the global economy. so, the U.S federal reserved is forced down to cut interest rates to greet the economic growth concerns. Precious metal like gold tends to attract buyers for low-interest rate climate.

 Precious metals like silver, platinum, and copper are also being nurtured by investors.

The upswing of gold prices is companied by global investors and speculative financial investors also increased their bets on rising prices of gold significantly. 

Individual investors are in panic mode, and hence investing in gold which has spawned sky-high rates of gold in the market.

Prices of gold are at its peak, on account of the simple psychology of human nature. This hike was last observed in 2012 and now is breached, according to the expert of jewelers the prices will likely go up to set new records, as no vaccines have been discovered and the coronavirus epidemic is jumping continents.

However, the upsurge of the gold price is on shaky ground, so fall is expected in the event of profit takings. 

Punch to the world economy

Markets initially wobbled when corona-virus premiered, but quickly got back. Implying that investors saw coronavirus as a small threat to corporate earning, they are now reappraising the situation.

The lossless to dow and S&P500 wiped their gains for the whole year

Business like Nike, Disney, Tesla,  and Apple, whose production is based in China, was some of the biggest hit by coronavirus epidemic 

Travel companies of UK- TUI and British Airways are both down 9% at the close.


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