Gold price advanced over 1 per cent in Monday’s early trade as widening
coronavirus outbreak and plunging crude oil prices hammered equities and sent investors scurrying for safe havens.
MCX Gold futures traded 1.27 per cent, Rs 560, higher at Rs 44,718 per 10 gram at around 9.15 am (IST). On the other hand, MCX Silver futures were down 0.09 per cent, or Rs 44, at Rs 46,925 per 1 kg.
The number of people infected with the coronavirus topped 1,07,000 across the world as the outbreak reached more countries and caused more economic carnage.
Italy’s markets are sure to come under fire after the government ordered a lockdown in large parts of the north of the country, including the financial capital Milan.
Hareesh V, Head of
Commodity, Geojit financial services said, “The global outbreak of coronavirus may continue to worsen the global economic sentiments and this has lifted gold’s haven demand. A sharp correction in the US dollar also offered lower-level support to prices. However, possibilities of rate cuts from central banks and weak physical market activities may limit major gains.”
Prithviraj Kothari, Director, Riddhi Siddhi
Bullions Ltd said, “People are buying gold in the name of insurance as a safety measure. The gold rate will increase up to $1,700 or even higher if the measure is not taken to control coronavirus.”