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Gold prices rose to a two-week high yesterday as the spread of a new virus in China stoked fears of a wider epidemic, sparking a sudden bout of risk aversion and sell-off in Asian stocks.

Spot gold prices touched their highest since January 8 at $1 568,35 and were up 0,1 percent to $1 563,01 per ounce by 0730 GMT. US gold futures were 0,3 percent higher at $1 564,10.

Asian shares slipped as the new coronavirus has spread to more Chinese cities and concerns mounted it could spread further with many travelling for the Lunar New Year holidays.

Gold prices were driven by “the rapid spread of the virus from Wuhan, China, which has caused panic”, said Margaret Yang Yan, a market analyst at CMC Markets.

“Chinese New Year holidays are going to worsen the situation as people are bound to travel in China ,” she added. — Reuters.