Gold jumped as the spread of the coronavirus globally spurred demand for haven assets.

Prices rose as much as 1.1% as risk-off sentiment swept markets, with equitiestumbling and Treasures gaining. In the latest attempt at containment, China extended the week-long Lunar New Year holiday and banned all outgoing overseas group tours to avoid having travelers contribute to its spread.

President Xi Jinping's government is under pressure to combat the outbreak that shows little sign of slowing down, with more than a dozen countries and territories reporting the illness within their borders. While the return of risk aversion is supportive of haven assets like bullion, investors are also assessing the extent to which the virus may keep consumers away from shops, damping the usual pick up in gold purchases during the holiday period.

Spot gold traded 0.5% higher at $1,579.72 an ounce at 11:40 a.m. in Hong Kong. Silver rose 0.7% and platinum fell. Palladium dropped 1.7%, extending its pullback from a record high.

Source : Bloomberg