Gold prices have extended their gains and have topped $1,611.42, the previous 2020 peak. XAU/USD is now trading at the highest levels since March 2013. Back then, it hit a high of $1,617, which is the next upside target.
The coronavirus outbreak has raised concerns that the global economy may face a significant slowdown. Central banks may react to the downturn by further reducing interest rates, making the safe-haven investment in gold more attractive.
The yellow metal has shown its resilience to temporary upswings in the market mood, which have previously pushed its price lower. It is also essential to note that XAU/USD has been trending higher since 2019, well before the respiratory disease became dominated headlines.
Here is how the move looks on the weekly chart:
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