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Bloomberg: Possible scenario of global recession due to coronavirus

Featured Bloomberg: Possible scenario of global recession due to coronavirus

The rapid spread of coronavirus is causing serious upheavals in the world economy and markets.

According to Bloomberg, the spread of the coronavirus "plunged" stocks, while simultaneously turning investors towards gold, the value of which on Tuesday was the highest for a month.

As Bloomberg reports, gold rose 18% in 2019 and the rally continues in 2020, with its value reaching its highest levels since 2013. "Gold reserves are preferred by investors as the coronavirus spread across China, raising the threat of a pandemic and slowing growth, " Bloomberg points out.

Goldman Sachs estimates that if the coronavirus flare continues in the second quarter of the year, then the gold price could reach as high as $ 1,850 (1,702 euros) an ounce. At the same time, Moody's warns that if the coronavirus develops into a pandemic it will likely lead to a "global recession". Mark Zadi, an analyst at Moody's, according to Bloomberg, noted that the chances for this scenario increased from 20% to 40%.