Gold traded near a seven-year high on concern that the coronavirus outbreak will retard global growth, coupled with speculation the Federal Reserve will ease monetary policy before the year-end. Palladium held near a record after building on a powerful rally.

Bullion is rising at a time when U.S. stocks are at an all-time high even as traders weigh the global impact of the disease. While Hubei, the province at the center of the outbreak, reported fewer cases after another revision to its counting method, there are signs of deepening economic damage. In addition, two deaths were reported in Iran, highlighting the threat outside China.

Spot gold traded at $1,607.83 an ounce at 9:00 a.m. in Singapore, down 0.2%. On Wednesday, it peaked at $1,612.98, the highest since March 2013. Holdings in global exchange-traded funds backed by bullion have risen to a record, and are on course for a sixth weekly expansion.

Palladium climbed 2% to $2,769.83 an ounce. The metal used to curb emissions from vehicles touched an all-time high of $2,849.61 on Wednesday on concerns over a widening global deficit, and as the Chinese government pledged to stabilize car demand in the country.

Among other main precious metals, silver and platinum were both slightly weaker.

Source : Bloomberg