The coronavirus fears, which pushed the Dow down 0.4 percent last week, continued this week sinking the Dow 1,000 points on Monday – its biggest drop in two years.
Today, the Dow closed down nearly 879 points.
Brent Crude, at $55 a barrel, is down from $59 last Thursday, as concerns grow that the virus will put more downward pressure on the already slowing global economy.
As stock markets retreated in fear of the coronavirus’s global economic damage, investors took refuge in gold, which reached its highest price since 2013.
February gold prices spiked to $1,643 on Friday and hit $1,672 a troy ounce, the highest price since early 2013, yesterday before retreating to $1,650 an ounce as we go to press.
TREND FORECAST: Gold spiked $300 an ounce since we forecast the start of the “Gold Bull Run” in our 6 June 2019 Trend Alert.
It should be noted that for some six years, Gerald Celente has forecast that when gold prices break above $1,450 an ounce, which they finally did last summer, they would spike toward $2,000 per ounce.
Considering the rapid price rise is now being pushed by coronavirus fears, we expect gold prices to steady in the $1,550 to $1,650 per ounce range before resuming their upward rise. Our downside risk is now $1,550 per ounce.
Now, with gold down some $30 per ounce from its Monday high, despite the equity markets tanking, it indicates a lessening of severity of the human toll and economic impact of the coronavirus in China and globally.
