COVID-19: Crude oil prices drop to $50.66 a barrel as Gold prices rise on safe haven demand

Crude oil market is also experiencing downward trading as Gold prices rise on safe haven demand due to the global effects of the Coronavirus.

An envisaging and calculations of hopes that the COVID-19 would be contained to China have vanished as the virus cases have spread to all continents and stock markets took a pounding amid fears of a global recession.

Brent crude oil futures fall over $1 to $50.66 a barrel in Friday’s trade. On the daily technical chart, a bearish wedge forming between December 26 and January 31 suggests a target around $38.79, the 100 per cent projection level of a C from $75.60. A realistic target will be $47.48, which is near $48.48 (hourly chart), Reuters reported.

Meanwhile Gold prices inched higher in global markets on Friday as worries intensified that the rapidly spreading coronavirus could turn into a pandemic and derail global economic growth. 

Spot gold gained 0.2 per cent to $1,645.79 per ounce and was up about 0.1 per cent for the week.

Globally, the stock markets plummeted as it has become increasingly clear the COVID-19 will take a huge toll on the global economy.

Asia Stock markets plunged again in opening trade on Friday morning, tracking huge losses in the United States and Europe. The Dow shed nearly 1,200 points, or 4.4 percent, on Thursday, taking its losses for the week to more than 11 percent.

"There was more coronavirus carnage on the markets," Spreadex analyst Connor Campbell said. "One of the worst weeks in recent memory and terrifyingly, it's not over yet. Friday is a tricky proposition."

Share prices were on track for the worst week since the global financial crisis in 2008.

Aviation stocks plunge up to 10% on coronavirus jitters

Shares of airline companies plunged up to 10 per cent on Friday as rating agency Icra said the outlook for the aviation sector remains negative in the wake of coronavirus outbreak. Shares of Interglobe Aviation - the parent of IndiGo - plunged 9.99 per cent to Rs 1,229.75 on the BSE. Spicejet stock cracked 6.06 per cent to a low of Rs 82.10. Defunct airline Jet Airways (India) hit its lower price band losing 4.84 per cent at Rs 24.55.

Auto shares slump; Tata Motors dives 8%

Shares of auto companies were trading in the red in Friday's morning session. Shares of Tata Motors (down 7.95 per cent), Tata Motors(DVR) (down 7.69 per cent), Bharat Forge (down 6.22 per cent), Ashok Leyland (down 5.86 per cent) and Amara Raja Batteries (down 5.16 per cent) were among the top losers in the index.

"The ongoing selloff is in line with global selloff. It is a risk off market right now that is why gold prices have also surged in the recent past. Global market is quite in panic with the spread of coronavirus front. Till the market doesn’t see any relief from the virus, we may see sideways to negative movement going forward." - Jay Anand Thakkar, CMT Assistant Vice President-Equity Research, Anand Rathi

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