Gold price rose in the commodity market as investors rushed to safe-haven assets upon the number of rising coronavirus cases, that are showing signs of hurting global growth.
The number of Covid-19 infections outside China have exceeded those inside the country for the very first time today. Spot international experts said buying of gold in global markets increased following a crash in equity markets. Gaining ground on geopolitical tensions, retail gold prices for 24 karats in Delhi, spiked to a record Rs 43,600 per 10 gm.
On the Multi Commodity Exchange, Gold April 2020 Futures spurted by another Rs 65 or 0.15% to a record high of 42,450 per 10 gm. Silver March contract, although, traded muted at 45,052 per kg. Gold price on MCX has made a high of 42,747 and low of 42,370, after opening at 42,385 today.
Over virus pandemic fears, Spot Gold 1641.95 per ounce, up 0.07%, extending yesterday's gain, while US gold futures were up 0.1% at $1,643.50. The price of the yellow metal gained for the third straight month, surging by 4% over the past month.
The viral outbreak that originated in China has now has now spread to six of the world's seven continents infecting more than 80,000 people.
While majority of cases and deaths remain centred in China, the virus has been reported for the first time in South America, making every other continent except Antarctica now infected by its outbreak.
Death toll in China has now crossed 2,700 though new cases in the country are falling. In Italy, 320 have been infected, while number stands at 139 cases in Iran, 22 cases in Australia, 59 in America. Algeria and Egypt have reported first cases each today.
Considered as a safe haven commodity, gold prices extended gains today when the equity markets worldwide saw a major sell-off as the rapid spread to other parts of the world has spooked markets and raised fears that it will hurt the global economy.
The precious metal as fears over coronavirus escalate geopolitical tension all around the globe. The safe-haven asset rises in times of fear and economic distress and trades negative correlation with equity.
Santosh Meena, Senior Analyst from TradingBells said, "Equity markets are falling sharply as fear of recession is rising where investors are looking for safe-haven instruments like Yen, US bonds and Gold. The momentum of new coronavirus cases in China is coming down but the number of cases outside China are rising sharply."