In global markets, gold prices on Friday jumped 1.6% to $1,646.20 an ounce as coronavirus concerns increased the safe-haven appeal of gold. Though China reported an uptick in new cases of coronavirus today, the rise in infections remained at its slowest pace since January.
Gold continued its record-breaking run in Indian markets. Gold futures on MCX on Friday a new high of ₹42,790 per 10 gram when they rose over 1.6%. They settled 1.5% higher at ₹42,691 per 10 gram. So far this week, MCX gold lifetime high are up about ₹1,800 per 10 gram. Silver futures on MCX also gained over 1% to ₹48,376 per kg.
Investment demand for gold continued to rise. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.25% to 933.94 tonnes on Thursday, the highest in over three years.
Meanwhile, China has announced a set of measures to cushion the economic impact of the coronavirus outbreak. Its central bank has slashed a key benchmark rate this week and said it would extend credit, provide favourable loans or rates to firms involved in controlling the epidemic.
Overall, gold prices are up over 7% in global markets this year with its safe haven demand being driven by global growth fears linked to the coronavirus outbreak.
It is premature to give precise projections of economic growth in China and the World in 2020 following the outbreak of coronavirus, IMF Managing Director Kristalina Georgieva said on Thursday.
