If you caught our bulletin on Friday, you’ll know that the outbreak of the coronavirus in China has provoked a lot of concern within the markets due to the future impact of store closures in affected areas. Yesterday (Tuesday) it was confirmed that the People’s Bank of China (PBOC) had taken steps to buoy confidence and ally market fears by investing 1.7 trillion yuan / $242.74 billion in open market operations during Monday and Tuesday trading. The move came after the virus severely impacted the Chinese stock markets. As a result of the PBOC cash injection, European and US markets traded strongly all day, with the Dow Jones up around 400 points.
This in turn has meant a return of the risk appetite – while the markets rally, gold has dropped around 1.5% to $1557.60. This creates one of the year’s best opportunities to buy – but you need to act now because it’s very likely we’ll see a return to business as usual as the dust settles and fears over the virus’s long term impact come back to the fore.