Gold prices jumped in Indian commodity market today tracking worries over rising number of coronavirus cases, after two new cases of Covid-19 were reported in the country.
The yellow metal that was already gaining on the back of support from international spot gold today, later added further momentum after 2 new Covid-19 infected cases were reported in Delhi and Telangana, taking the total number of infected from the virus outbreak to 5 in the country.
As per official update from the government, while one person that tested positive for coronavirus in Delhi had a travel history from Italy, the person tested positive in Telangana had a travel history from Dubai.
Following the news, Gold Futures on MCX rose 783 points to the day's high of Rs 42,180 as compared to the opening price of Rs 41,397 per 10 gram.
Gaining ground on geopolitical tensions, retail gold price for 24 karats in Delhi, spiked to a record Rs 42,700 per 10 gm.
Novel coronavirus outbreak that originated in China has now spread to six of the world's seven continents infecting more than 88,000 people and taking new fatalities to over 3,000 worldwide. The number of countries affected by the virus outbreak has reached 68 on March 1 from 30 on February 23.
Following a steep fall across the precious metals in previous session, Spot Gold was trading 1% higher on Monday to $1,602.90 per ounce. US gold futures traded 1.9% higher at $1,597.10.
Hareesh V, Head of Commodity at Geojit Financial Services said, "Gold will remain positive due to increase in demand for safe-haven assets amid economic fears due to the virus outbreak in China, feeble global equities and a weak US dollar."
Speaking on the near-term technical outlook of spot gold, he further added, "As long as $1560 holds the downside, expect a continuation of the momentum towards $1592 initially followed by $1610 levels. However, an unexpected drop below $1554 could weaken the sentiment."