Gold Hits Record High As Coronavirus Worries Trigger Flight To Safety
Gold rate today: Gold on MCX surged by 2.5%.
Gold rates news: Gold prices surged to an all-time high of Rs 43,788 per 10 grams on MCX on Monday as fall in equity markets due to fast spreading coronavirus triggered demand for the safe-haven yellow metal. Gold's record breaking run continued on Monday as investors sought more and more safe haven assets over increased uncertainty due to soaring coronavirus cases. Gold futures for April delivery were last seen trading at Rs 43,630, up 2.26 per cent. Spot gold prices in Mumbai rose to Rs 43,590, according to Indian Bullion and Jewellers Association (IBJA).
South Korea and Italy raised alert due to the soaring Coronavirus cases. South Korea reported its seventh coronavirus death and 161 new confirmed cases on Monday, bringing the total number to 763.
Gold prices in international markets also saw a spike as the gold surged by as it rose 2.5 per cent to over seven-year highs on Monday.
"Gold prices continued upside with international spot gold prices opening higher on Monday, rallying above $1,680. Spot gold for 24 karat in Delhi rallied as much as Rs 953 on weaker rupee and strong international prices," HDFC Securities Senior Analyst (Commodities) Tapan Patel told Press Trust of India.
"Gold prices have rallied after latest reports showing coronavirus has spread beyond China with rise in infections and deaths in South Korea, Middle East and Italy," Mr Patel added.
Gold is considered as a hedge against riskier assets and its demand increases when equity markets witness volatility, analysts said.