Gold prices surpass Rs 43,000 per 10 grams

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Gold prices hit a fresh record high on Monday tracking weakness in Indian rupee as the new cases of coronavirus surged in Italy, China, South Korea and Iran. “MCX gold has reached uncharted territory since its trading at multi-year high in the international market. Coronavirus has continued to spread in Iran and South Korea.

IMF has said virus outbreak could break economic recovery sharply. Iran has said it is a national level health crisis. Safe haven demand has reached an all-time high again. The sentiment is likely to be positive for intraday today.

On Monday morning, gold April futures were trading Rs 394 or 0.92 per cent higher at Rs 43,060 per 10 grams, while silver March futures were ruling at Rs 48,600 per kg, up Rs 296 or 0.61 per cent. US gold futures climbed a per cent to $1,665.1 an ounce. Spot gold jumped to a seven-year high of 1,678.58 after marking its biggest weekly gain last week since early August, as per the Reuters report.

In commodities, oil prices slipped as concerns about the spread of coronavirus outside China grew, reporting an increase in the infections in South Korea, Italy and Iran. Brent crude slumped 3 per cent, or $1.77, to $56.72 a barrel while US crude dropped 2.7 per cent, or $1.48, to $51.9 a barrel.

On the domestic equity market front, Sensex and Nifty were trading over a per cent lower on Monday tracking weakness in global equities amid coronavirus fears. The S&P BSE Sensex was trading 429 points or 1,04 per cent lower at 40,741, while the broader Nifty 50 index was ruling at 11,951, down 130 points or 1.08 per cent.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

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