Gold prices recorded their biggest increase on a weekly basis since 2008, rising along with risky asset values ​​such as equities after investors assessed the impact of massive monetary and fiscal stimulus on the economies affected by the spread of coronavirus. As of 17:45 GMT, the gold futures are traded for 1,627.02 USD per ounce.

As the coronavirus spreads globally, investors seek safe havens for their assets. However, interest in gold is increasing at a time when supply channels are suspended and flights are canceled. This limits the capacity of sellers to fulfill their metal supply commitments.

“The headlines for coronavirus have raised concerns about the ability to buy and deliver physical gold”, commented RBC Capital Markets. “These concerns are in many ways justified, but we may start to see wider disruptions throughout the supply chain”, add the analysts.

Key players in the global market are working together to facilitate actual deliveries, although many bullion and coin dealers report that they are unavailable, RBC said. “While these fears are likely to increase as prices rise, gold-positive conditions are not over”, they said.

But there are also signs of market difficulties. The African gold refinery plant, Rand Refinery, stopped shipping bars to London due to a lack of commercial flights.

The role of gold as asylum is gaining ground as more and more evidence of the economic damage caused by the pandemic is emerging. A total of 3.28 million people have applied for unemployment benefits over the past week, a record for this indicator. Many economists say the country is entering a sharp recession.

Other major precious metals also reported increases in their market values ​​this week: the price of silver rose 15%, platinum rose 22% and palladium jumped 46%.