The benchmark stock indices have made a poor start to the week with a loss of close to 1% at open.

Gold prices continue to be in focus as investors remain worried about increasing economic uncertainties.

Join us as we follow the top business news through the day.

Gold soars to record high as virus fears lift safe-haven demand

Safe haven demand among investors continues to push gold higher.

Reuters reports: "Gold prices surged to an all-time high on Monday as fears over an economic fallout from rising COVID-19 cases boosted demand for the safe-haven metal, although gains were capped by an uptick in the U.S. dollar.

Spot gold was steady at $1,973.94 per ounce by 0254 GMT, after hitting a record high of $1,984.66 in early Asian trade. U.S. gold futures rose 0.3% to $1,992.30.

“The sentiment across markets is deteriorating. First of all, rising infection rates are a real concern for the globe and a real support for gold prices. Given that, it is also driving U.S. dollar higher,” said Michael McCarthy, chief strategist at CMC Markets. Coronavirus cases continued to surge in the United States and stood at over 17.96 million globally.

Rising COVID-19 cases and simmering U.S.-China tensions have dented hopes for a swift economic recovery, driving inflows into safe-haven assets such as gold, which climbed 30% so far this year.

“Gold also saw safe-haven demand as the federal unemployment bonus expired on Friday, which would affect U.S. consumer income and spending and the U.S. Central Bank would thus remain dovish,” Phillip Futures analysts said in a note. U.S. lawmakers struggled to hammer out a new stimulus plan.

White House Chief of Staff Mark Meadows said on Sunday he was not optimistic on near-term deal for coronavirus relief bill. Limiting gold's advance, the dollar index rose 0.2% , having touched its lowest level since May 2018 in the last session.

A weaker dollar, also considered a rival safe haven, makes gold cheaper for holders of others currencies. China's factory activity expanded at the fastest pace in nearly a decade in July, a survey showed.

Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to July 28. Elsewhere, silver eased 0.2% to $24.32 per ounce, platinum fell 0.9% to $899.04 and palladium dropped 1.1% to $2,068.29."

Gold shines again

Precious metals regained lustre with gold and silver recording handsome gains in July. The rising number of COVID-19 cases, along with the weakness in the U.S. dollar, was the driving force behind the surge in precious metal prices. Concerns around U.S.-China tensions too aided sentiment.

Comex gold gained 10.3% to settle at a high of $1,985.9 an ounce. This is the biggest monthly gain for Comex gold in the last 8 years. The price action in Comex silver was even more interesting, as it rose a whopping 30.6% in July to $24.2 an ounce. This was the biggest-ever monthly gain in silver.

Gold futures at MCX rose 9.5% in July to ₹53,544 per 10 gm. MCX silver futures closed 29% higher at ₹64,984 per kg in July. As observed last month, comex gold ruled firm and moved well past the target of $1,835-1,840. The recent uptrend in comex gold is likely to sustain in the short term. The price could head to the next target of $2,020-2,030 an ounce. A fall below $1,920 would invalidate the positive outlook for gold.

Shares fall as virus cases surge; banks slip

The fall in stock prices continues. Notably, the benchmark indices broke their 6-week winning streak last week.

Reuters reports: "Indian shares fell on Monday, led by a decline in banking stocks, as the number of domestic coronavirus cases leapt by a record over the weekend and high-profile politicians tested positive.

The NSE Nifty 50 index, which clocked a 7.5% gain last month, fell 0.64% to 11,002.65 by 0355 GMT, while the S&P BSE Sensex was 0.73% lower at 37,335.25.

The Nifty banking index fell 1.31%. The nation's top private sector lender, HDFC Bank Ltd, was the biggest drag on the Nifty 50, with a 1.6% decline.

India's tally of COVID-19 cases crossed 1.75 million on Sunday, after logging a record surge a day earlier, with the death toll at 37,364. The country has the world's third highest caseload after the United States and Brazil.

India's Home Minister Amit Shah, a close aide to Prime Minister Narendra Modi, tested positive for COVID-19 on Sunday, becoming the senior-most politician in the country to catch the virus.

The chief minister of the southern state of Karnataka, home to the tech hub of Bengaluru, also said https://twitter.com/BSYBJP/status/1289984447400407040 he tested positive for COVID-19.

Other Asian share markets were mixed on Monday as U.S. lawmakers struggled to hammer out a new stimulus plan."

AIIB in discussion with India for financing of ambitious USD 8-bn health infra scheme

The pandemic has brought India's dilapidated health infrastructure into focus.

PTI reports: "The Asian Infrastructure Investment Bank (AIIB), along with the World Bank and the Asian Development Bank, is in discussion with the Indian government for part-financing a USD 8-billion scheme for improving the health infrastructure at the district level to make the country better prepared for future healthcare challenges.

The Beijing-based multilateral funding agency had earlier approved a financial assistance of USD 1.2 billion for India to fight the COVID-19 pandemic.

“The Government of India has discussed about its ambitious scheme of strengthening the health infrastructure. It entails building health infrastructure in every district including upgrading of testing facilities with the Indian Council of Medical Research (ICMR),” AIIB Vice President D J Pandian told PTI in an interview.

It is a USD 8-billion project, he said, adding that the World Bank and the Asian Development Bank are also involved in the discussion with the Health Department of the Government of India.

The Finance Ministry is trying to put up a financing plan for this ambitious scheme and the minute details are being worked out, he said.

If things work out, the financing by the AIIB can be cleared this year itself on a fast-track basis, he added.

With regard to COVID-19 assistance, Pandian said the AIIB has approved two loans of USD 500 million and USD 750 million, respectively.

The first loan of USD 500 million sanctioned in May was towards building a resilient health system that can effectively treat COVID-19 patients and prevent its spread, he said

A USD 750 million loan was approved in June to help the government strengthen its battle against the adverse impact of COVID-19 on poor and vulnerable households.

For AIIB, India is the largest borrower, which accounts for 25 per cent of the total lending by it so far. As of July 16, 2020, AIIB has approved up to USD 19.6 billion for 87 projects in 24 economies. Since its inception in 2016, AIIB has approved loans to the tune of USD 4.3 billion across 17 projects in India.

India is a founding member of the multilateral funding agency with the second-highest voting share. Currently, India has a 7.65-per cent vote share in the AIIB, while China holds a whopping 26.63-per cent stake in the organisation that was set up in 2016."

Discoms’ outstanding dues to power gencos rise 47% to ₹ 1.33 lakh crore in June

Power producers’ total outstanding dues owed by distribution firms rose over 47% year-on-year to ₹ 1.33 lakh crore in June 2020, reflecting stress in the sector.

Distribution companies (discoms) owed a total of ₹ 90,655 crore to power generation firms in June 2019, according to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).

The portal was launched in May 2018 to bring in transparency in power purchase transactions between the generators and discoms.

In June 2020, the total overdue amount, which was not cleared even after 60 days of grace period offered by generators, stood at ₹ 1,20,041 crore, as against ₹ 72,362 crore in the year-ago period.