Gold prices have been easing back a bit after making a solid run for the $1,700 threshold this past Monday. By the end of mid-week trading on Wednesday, gold had tracked down to $1,641 per ounce. These gold prices still mark seven-year highs, but whether or not gold will continue going higher before settling back further is uncertain in the near-term.
The coronavirus scare has threatened the stability of world markets, as nations in every continent except Antarctica grapple with this often-fatal and easily communicable virus. Now, a warning by the Centers for Disease Control & Prevention (CDC) have suggested that the coronavirus sweeping through the United States isn’t a matter of “if, but when.”
On the heels of this dire warning, stocks continued sliding through Wednesday afternoon trading. This week alone, the Dow Jones Industrial Average had lost 2,033 points by closing yesterday. It fell 123 points on Wednesday, after shedding 1,031 points on Monday and another 879 points on Tuesday.
The markets could see further losses still if the coronavirus spreads throughout the United States as the CDC predicts may happen. This could help influence gold prices upward, as the yellow metal is seen by many investors as a safe-haven hedge against bad economic times. We will likely see choppy economic waters ahead over the next several weeks, perhaps even months, as the world reacts — and waits — to see what happens with the virus next.