On the back of tensions in the Middle East and concerns around an outbreak of virus in China, gold is being again lapped up by investors due to its safe haven appeal. Meanwhile, traders are also focusing on decision of Bank of Japan policy.
In the international markets, spot gold surged to a 2-week high by as much as 0.3% to 1,565.36 per ounce by 0147 GMT. US gold futures were up 0.4% at $1566.
Similar trend is seen back home, with gold futures contract on the MCX up Rs. 217 or 0.54% at Rs. 40,164 per 10 gm. Silver too jumped 0.57% to Rs. 46969 per kg.
Meanwhile, Bank of Japan's policy is being eyed which is likely to hold rates and as per a top IMF official global growth has been bottomed out with no recovery in sight and the factors hurting the global growth range from trade tensions to climate uncertainties.
Even IMF has lowered its global growth forecast to just 4.8% and for India specifically after a period of some stabilization, recovery is only expected in the first half of FY2020-2021.