2020.03.0911:24:00UTC+00Gold Edges Up Amid Equity Selloff

Gold prices edged higher on Monday amid safe-haven demand as equity markets across the world plunged deep into bear market amid concerns surrounding the rapidly spreading coronavirus and a free fall in oil prices sparked by top exporter Saudi Arabia slashing price.

Spot gold edged up 0.2 percent to $1,678.35, after having hit its highest since December 2012 at $1,702.56. U.S. gold futures were up 0.4 percent at $1,679.75.

Gold prices hovered nearly a seven-year high as concerns about the widening coronavirus outbreak and its economic impact drove investors to safe-haven assets.

Roughly 11,000 people have been infected worldwide and more than 3,800 have died from the virus.

The Italian government extended a coronavirus quarantine to cover a quarter of its population, raising fears the lockdown could push the country into recession.

Germany's government announced measures including additional investment over next four years to boost the economy as the coronavirus, or COVID19, outbreak hurt activity.

"As a result of the coronavirus, no company in Germany should go bankrupt, nor should any job be lost as much as possible," the coalition said in a statement today. The measures were decided after talks late Sunday.

The European Union (EU) needs a "massive" economic stimulus package to fight with the negative impact of the coronavirus outbreak, French Finance Minister Bruno Le Maire said today.

China's exports contracted sharply in first two months of 2020 and a measure of investor morale in the euro zone plummeted in March to its lowest level since April 2013, further denting risk sentiment.

Elsewhere, Japan's gross domestic product saw a downward revision to -7.1 percent year on year in the fourth quarter of 2019 - worse than expectations for -6.6 percent after last month's preliminary reading suggested a decline of 6.3 percent.