Major international stock markets including the Dow Jones, STOXX 600, and the FTSE 100 have today entered correction territory, having suffered a drop of 10% or more in cases from their recent peaks following continued coronavirus fears and the subsequent impact upon labour and supply chains globally.
February Gold News 2020
Reports came out over the weekend that a gold field, with reserves of anything up to 3,000 tonnes of gold ore, had been discovered in the Sonbhadra district of Uttar Pradesh, India by the Uttar Pradesh Directorate of Geology and Mining.
Gold reached a record Pound Sterling high of £1,308.73 per ounce yesterday following reports from the World Health Organisation of 367 new cases of the Covid-19 virus outside of China, and a total of 80,000 cases globally.
Japan has become the latest economy risking recession following the release of weak GDP figures this morning. Data from the fourth quarter of 2019 shows the world’s third-largest economy contracted by 1.6% - its worst quarter since Q4 2014 and the second-worst since the financial crisis in 2008/09.
An unusual anomaly in gold exports from the UK has triggered what one Conservative MP called a ‘record breaking year for UK exports’, though the reality appears to be somewhat different...
Official figures show the UK economy has stalled in the final quarter of 2019, as Brexit uncertainty dragged down businesses.
Consumer spending was poor considering the crucial Christmas period; but it was manufacturing in particular that performed poorly.
A collection of Iron Age gold coins has been declared treasure by Suffolk’s senior coroner, having been discovered almost a year ago.
19 coins were found near Blythburgh, Suffolk last February by a metal detectorist. The anonymous finder reported the discovery to Suffolk County Council, and through them the coins have been the subject of cleaning and analysis for the past year, ready for sale to museums keen to display the collection to the public.
The price of gold has made slight gains in the past 24 hours, peaking at $1,576.46 per ounce just before midnight as the Asian markets opened and reacted to the latest coronavirus news.
Prices today have risen due to the confirmation that the coronavirus death toll has now surpassed that of SARS. The UK today reported four new cases of coronavirus, while in Japan the Nissan car factory in Kyushu has suspended production while the virus is still prevalent.
After a strong 2019, gold-backed ETFs continued to perform strongly at the start of 2020, registering a new record high number of holdings at 2,947 tonnes of gold.
33 tonnes of January’s increased ETF holdings came from Europe, with the UK the primary source of gold-backed ETF demand at 21 tonnes ($1.1 billion).
China has announced it will be cutting tariffs on $75 billion worth of goods by half, in a major boost to global stock markets amidst the ongoing coronavirus outbreak.
The CSI 300 index in China rose by 1.86%, while the Hang Seng rose by 2.4%. In Europe, the STOXX 600 hit a new record high of 424.80 points, courtesy of strengthening stocks in the UK, France, and Germany.
China’s Shanghai Composite index registered a loss of 7.72% today (-229.82 points) as fears over the rapidly spreading Coronavirus were finally reflected on the previously-closed Asian markets.
Investors are wary of backing markets – especially Chinese ones – in the face of reduced operations. With business effectively on hold, many investors see little point in putting money into the system.
A new international bullion exchange has been proposed as part of the Union Budget in India this weekend. In a speech to India’s parliament, Finance Minister Nirmala Sitharaman unveiled plans for an exchange to be created in Gujarat’s GIFT City, with investors optimistic this would be a managed way around current strict import restrictions on gold and silver, as well as overvalued exports.