Gold dropped, trimming a third monthly gain, even as stocks tumbled again on concern the coronavirus outbreak will harm global growth.
Spot gold -1% to $1,627/oz at 6:28am in London. Metal -1% this week; +2.4% in Feb. Price hit $1,689.31 on Monday, the highest level since 2013.
In February, bullion has benefited from the flight from risk as investors grapple with the sell-off in the S&P 500 Index and collapse in the yield on 10-year Treasuries to a record low. Still, there’s scope for profit-taking on gold as it may be used to meet margin calls amid the equities rout, although risks for prices remain to the upside, according to Suki Cooper, precious metals analyst at Standard Chartered.
Source : Bloomberg