Commodities Daily - February 13, 2020

> Gold climbs to $1,575/oz amid jump in coronavirus numbers in China. Investors have been digesting comments from Fed officials, including Jerome Powell, over the past two days. Powell said the impact of the coronavirus on the US economy will become apparent in the near future and the Fed will monitor the economic data. He added that the bank will deploy various tools, including QE, to neutralize the negative effect. The calendar is light today. US initial jobless claims data is due at 16:30 Moscow time. We think gold is likely to remain in the $1,565-1,575/oz range today.> Base metals prices remain sensitive to coronavirus news out of China. Markets were upbeat yesterday after the Chinese health minister said the peak of the coronavirus epidemic should come this month. However, yesterday's positive rhetoric has been overshadowed today by growth in the official death toll and infection count, which has soured sentiment. As of this writing, the 3m forward contract for copper is trading at $5,740/tonne, while zinc is quoted at $2,160/tonne and aluminum at $1,728/tonne.GOLD CLIMBS TO $1,575/OZ AMID JUMP IN CORONAVIRUS NUMBERS IN CHINASafe-haven demand remained in place this morning. China has changed the way it calculates the coronavirus figures, which has dramatically boosted the death toll (to 1,357 as of this morning) and number of infections (by 14,840). This pushed gold almost $10/oz higher to $1,575/oz in Asian trading this morning.Over the past two days, investors have been digesting comments from Fed officials. Yesterday, San Francisco Fed President Mary Daly said the US economy was in good shape and labor market data is likely to remain positive. The day before, Jerome Powell told the Senate that the impact of the coronavirus on the US economy will become apparent in the near future and the Fed will monitor the economic data. He added that the bank will deploy various tools, including QE, to neutralize the negative effect. Judging by statements from Fed officials, a rate cut is unlikely anytime soon, which is neutral for gold.The calendar is light today. US initial jobless claims data is due at 16:30 Moscow time. We think gold is likely to remain in the $1,565-1,575/oz range SE METALS PRICES REMAIN SENSITIVE TO CORONAVIRUS NEWS OUT OF CHINAMarkets were upbeat yesterday after China's health minister said the coronavirus epidemic should peak this month. Chinese political leaders also announced that the government would provide financial support to sectors and businesses affected by the virus, including a series of tax cuts, eased lending and increased government investment. However, yesterday's positive rhetoric has been overshadowed today by growth in the official death toll and infection count (see the gold comment above for more), which has soured sentiment. As of this writing, the 3m forward contracts for copper are trading at $5,740/tonne, while zinc is quoted at $2,160/tonne and aluminum at $1,728/