China’s senior medical advisor has created a window to buy now after remarking that the deadly coronavirus would be over by April – an opinion which lifted risk appetite and crude oil prices, sending gold into a retreat.
The precious metal was down 0.6% to $1570.10 yesterday (Tuesday) – inadvertently perhaps, the Chinese official has created a strong reason to buy now as the increased risk appetite pushing gold lower looks to be a knee-jerk reaction. While the April expectation incited a market surge, the comments appear to only have been taken at face value.
According to the World Health Organisation (WHO) chief Tedros Adhanom Ghebreyesus has said that the virus is now a bigger global threat than terrorism and with over 42,000 confirmed cases, the world must “wake up and consider this enemy virus as public enemy number one.”
In light of these comments, the smart money is on acting fast and buying now, before markets catch up and risk appetite declines, pushing gold prices higher.