Palestine Economy Portal.

Gold rose on Thursday due to purchases of a demand for safety, fueled by fears about the fast-spreading Corona virus, but a rise in stock markets limited the gains in the metal.

The spot price of gold was up 0.2 percent at $ 1638.70 an ounce. And US gold futures fell 0.2 percent to $ 1639.50.

"When we see support for gold and the dollar together, it is an indication of a desire for safe haven from investors," said Michael McCarthy, chief market strategist at CNC Markets.

The dollar recovered from its recent declines, drawing support from strong US jobs data on Wednesday.

Unearthed gold from the Federal Reserve suddenly cut interest rates on Tuesday to protect the world's largest economy from the consequences of the epidemic.

Asian stocks rose on Tuesday, following the gains of the US market on Wednesday night, after a strong performance by Joe Biden, former Vice President of the United States in the campaign to win the Democratic nomination for the presidential elections.

"If this (stock) rally continues for three or four days, then markets may treat it as a green light in terms of the economic impact of the virus, and we may see pressure on gold," McCarthy said. The situation is very volatile.”

For other metals, palladium fell 1.9 percent to $ 2527.21 an ounce.

"The auto supply chain will be affected by the virus Covid-19," ANZ analysts said in a note. However, this demand shock is expected to have a limited impact on the palladium due to its structural deficit, and we see scope for further setbacks following the recent rally.

The metal used in automobile exhaust systems fell by as much as 13 percent on February 28, following a record rally that took it to an all-time high of $ 2875.50 on February 27 due to an acute supply shortage.

Silver rose 0.1 percent to $ 17.20 an ounce, while platinum lost 0.2 percent to record $ 871.10.