Gold ekes out gains as markets turn risk-off

• Gold is flashing green amid risk-off tone in equities.
• Renewed coronavirus scare has likely put a bid under haven assets.

Gold is finding love in Asia amid signs of risk aversion in the equity and currency markets. 

At press time, the yellow metal is trading at $1,570 per Oz, representing a 0.30% gain on the day.

Risk off

The futures on the S&P 500 are currently down 0.30% and so is the price of WTI oil. Japan’s Nikkei is also reporting a 0.10% drop. Meanwhile, the Japanese yen is drawing bids against the commodity dollars – AUD, NZD and CAD. 

The risk off sentiment could be associated with the renewed coronavirus fears triggered by a big jump in the coronavirus cases in China.

Hubei province reported 14,840 new cases earlier today. The caveat, however, is that the number includes clinically diagnosed patients – those with symptoms, but yet to be tested positive. 

Markets may reassess the historical data with the new method. If the trend is found to be slowing, the risk sentiment may improve, weakening the bid tone around the yellow metal. 

Technical levels