Gold prices on Monday held near a two-week high scaled in the previous session as uncertainty prevailed over the impact of the coronavirus outbreak on the global economy. Spot gold was little changed at $1,582.08 per ounce, as of 0701 GMT, having touched its highest since Feb. 3 at $1,584.65 on Friday. US gold futures were down about 0.1% at $1,585.30.
"Gold is holding firm at high prices as uncertainty around coronavirus remains high, while the economic impact is still unclear," said Michael McCarthy, chief market strategist at CMC Markets.
The death toll from the outbreak in mainland China reached 1,770 by Sunday, up by 105 from the previous day, the country's National Health Commission. "Given the extent of the impact of the coronavirus in China, gold physical demand is likely to suffer. (But) it is too early to estimate the effects," UBS said in a note dated Feb. 14.
Premiums for physical gold in China, the world's biggest bullion consumer, slid to their lowest since at least July 2018 last week. Speculators increased their bullish positions on COMEX gold in the week to Feb. 11.
"The dollar normally works against the gold price, but the fact that gold did rise despite that goes to say that it (dollar) doesn't have much impact on gold at the moment," CMC's McCarthy said, adding, the strong technical resistance of $1,590 is "limiting the enthusiasm in the market."