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  • The ounce troy of the precious metal picks up pace.
  • Concerns around the coronavirus resurface and lift the metal.
  • Gold challenges 6-week highs near the key $1,600 mark per ounce.

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold in multi-week highs

Prices of the yellow metal are extending the monthly rally, posting gains for the second consecutive week and at the same time extending the rebound from lows around $1,547 recorded on February 5th.

Indeed, safer assets (like gold and bonds) saw their demand intensified on Tuesday in response to re-emerging coronavirus fears, lifting prices of the precious metal to fresh multi-week highs near the $1,600 mark and depressing yields of the US 10-year reference.

However, extra gains in in gold could be larger if it weren’t by the solid march of the greenback, which is trading in fresh 4-month tops near 99.50 when gauges by the US Dollar Index (DXY).

Gold key levels

As of writing Gold is gaining 0.76% at $1,592.58 and a breakout of $1,593.90 (monthly high Feb.3) would expose $1,600 (psychological level) and then $1,611.34 (2020 high Jan.8). On the flip side, initial support lines up at $1,547.67 (monthly low Feb.5) seconded by $1,536.11 (low Jan.14) and then $1,514.10 (61.8% Fibo of the December-January rally).