OSAKA, Japan--(BUSINESS WIRE)--The price of Gold rose on Thursday due to the recent spread of the novel coronavirus, and the fact that it has reached Europe, including other countries outside of China. The so-called safe-haven asset price was also helped by more speculation that central banks would cut interest rates.
The precious commodity has rallied over the past month over market uncertainty. Japanese private investment company Osaka Matsui Management reported that spot gold increased 0.6% to $1,648.63 U.S. Dollars per ounce in its recent trading session.
“With every incident over the past few decades where market uncertainty has persisted, we have seen safe-haven assets, primarily Gold, have a stronger demand, resulting in higher prices,” commented Michael Carter, Head of Global Equities at Osaka Matsui Management.
Growing concerns due to the outbreak of the novel coronavirus have urged central banks to step up and take swift action if markets continue to decline. Governments around the world increased efforts to combat the virus outbreak as the number of infections outside of China grew for the first time.
“Financial markets across the scale have already factored in the price cuts by leading central banks; however, the demand for safe-haven assets remain high,” added Michael Carter, The Director of Corporate Trading at Osaka Matsui Management.
Market sentiment has singled that a rate cut from the U.S. Federal Reserve is also likely to take place as a result, to ease the pressure of the recent impact on the U.S. economy.
Prices in Gold rallied over more than one percent on Wednesday before closing 0.3% higher. Other precious metals such as palladium also increased hitting $2,807.65 per ounce highs amid market tensions.
Osaka Matsui Management is a private wealth management company that prides itself on fulfilling clients goals with passion and integrity. With over $8.4 billion U.S. Dollars of assets under management, Osaka Matsui Management has been assisting both private and corporate clients since 2006.