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Mumbai, Feb 24 (IANS) Supported by weakening rupee and uncertainty owing to the fast spreading coronavirus, prices of safe haven assets like gold and silver rose sharply on Monday. Gold prices logged a life-time high of Rs 43,590 per 10 grams, jumping over Rs 1,800 in a single session.
This comes on the back of rise in Coronavirus cases outside China, the epicentre of the outbreak. Italy saw virus cases jumping exponentially from three on Friday morning to more than 150 by Sunday.
Italy declared a lockdown in at least 10 cities applying to nearly 50,000 people -- the first-ever in Europe -- in an effort to contain the biggest outbreak of the virus outside Asia.
In the futures market, gold logged a life-time high of Rs 43,788 per 10 grams on Monday. At MCX, the April expiry contract of the yellow metal traded at Rs 43,500 per 10 grams, up Rs 834 from its previous close.
Gold spot rallied to 7-year highs in the international spot platform while India's domestic gold prices marched to all time highs. Bullion traded firm on Monday on improved safe haven appetite on the back of spreading coronavirus epidemic.
South Korea reported its seventh coronavirus death and 161 new confirmed cases on Monday, bringing the total number to 763, with health authorities vowing to contain the spread of the virus in the southwestern city of Daegu where more than half of the total cases were reported.
"Worries over coronavirus return as new cases were confirmed in Europe, Iran and Korea. U.S. FOMC meeting minutes signalled that Fed expected to keep a neutral stance on monetary policy in the near term," a Geojit report said.
Upbeat sentiments in prices likely to continue as the metals' safe haven demand remain supported by increased geo-political tensions. More coronavirus infected cases outside China and its potential negative impact on the global economy will prompt investors to take refuge in safe assets like gold, analysts said.
--IANS
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