Breaking: Gold price breaks above $1,700 amid growing coronavirus conerns

The price of gold has been extending its gains at the beginning of the new week in Asia. XAU/USD has reached a high of $1,700.32 at the time of writing. 

Growing concerns about coronavirus, especially in Italy, have triggered safe-haven flows toward the precious metal. The eurozone's third-largest country announced severe travel limits in several northern provinces including where 16 million people live, including Milan. The death toll from the virus has climbed from 233 to 366. 

Investors fear damage to the US economy, with PIMCO foreseeing an outright recession. The crash in oil prices is not helpful either.

Above $1,700, the next target is $1,720. The all-time high is above $1,900 and is from 2011. Support awaits at the previous seven-year peak of $1,690.

Here is how the move looks on the daily chart:

More Gold Price Forecast: Logs biggest Weekly Gain Since February 2016, focus on coronavirus-related developments