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Gold prices rise today as coronavirus outbreak spurs safe-haven demand, silver rates surge

Surbhi Jain
gold prices today, silver

Gold prices on the Multi Commodity Exchange of India (MCX) rose today after two falling for two consecutive sessions amid coronavirus fears. Gold April futures were trading Rs 241 or 0.57 per cent higher at Rs 42,745 per 10 grams, while the silver March futures were ruling at Rs 47,025 per kg, up Rs 473 or 1.02 per cent on MCX. "More cases were reported in countries other than China in the past 24 hours for the first time, the WHO said, with new infections in nations from Pakistan to Brazil. The safe-haven demand has continued to grow. US will release Q4 GDP, weekly jobless claims & home sale data later today hence the sentiment may stay positive," Jigar Trivedi, Fundamental Research Analyst- Commodities, Anand Rathi Shares and Stock Brokers said.

Gold prices gained in today’s session as the spread of coronavirus spiked the safe-haven demand. Spot gold gained 0.3 per cent to $1,644.11 per ounce, while US gold futures was up 0.2 per cent at $1,646. "Gold is expected to trade higher today as a correction in the equity market and increase in coronavirus cases in china. The expectation of lower global growth forecast and US fed rate cut also support the gold price and increase the safe-haven buying in gold. We are expecting to trade higher in gold," Anuj Gupta, Deputy Vice President – Research, Angel Broking Ltd said. 

The number of fresh infections from China was overtaken by new cases elsewhere on Wednesday. Italy and Iran emerged as epicenters of the rapidly spreading illness with 400 and 139 cases, respectively. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.5 per cent to 935.70 tonnes on Wednesday, as per the Reuters news.

Back home, the domestic equity market benchmarks Sensex and Nifty were trading over a per cent lower on Thursday. S&P BSE Sensex was trading 408 points or 1.02 per cent lower at 39,480, while the broader Nifty 50 index was ruling at 11,557, down 121 points or 1.04 per cent.