2020.01.2709:29:00UTC+00Gold Hits Two-week High On Safe-haven Demand

Gold prices rose on Monday to hit two-week highs as concerns over the spread of a virus outbreak in China and its potential economic impact sapped demand for riskier assets.

Spot gold climbed 0.8 percent to $1,583.24 per ounce, while U.S. gold futures were up 0.7 percent at $1,582.75.

The death toll from China's new coronavirus grew to 80 Sunday, with more than 2,700 people infected globally.

China's National Health Commission on Sunday said the new coronavirus is contagious even in its incubation period, which lasts up to 14 days, and that the virus' ability to spread is getting stronger.

Political events also remained on investors' radar after Matteo Salvini's attempt to trigger a crisis for Italy's coalition government by seizing control of the leftwing region of Emilia-Romagna failed.

Elsewhere, British Prime Minister Boris Johnson said that Britain will become a "global, trail-blazing country" as he unveiled the government's full plans to mark "Brexit day" this Friday. The U.K. will officially leave the European Union at 11pm on Friday 31 January.

Investors now look forward to the Federal Reserve's first policy meeting of the year scheduled on Jan. 28-29, where the U.S. central bank is widely expected to keep rates unchanged.