Gold Prices In India Climb Closer To Rs 45,000 As Global Rates Touch 7 Year High

Gold prices have been racing for a couple of weeks as investors seek refuge in risk-averse assets amid increasing concerns over the spread of coronavirus.

On MCX, gold futures (April 2020) opened at Rs 44,575 per 10 grams on Monday after having touched an all-time high of Rs 44,961 on the previous trading day.

Gold prices in India are replicating a surge seen in the global markets where spot gold rose over 1.5 percent to $1,702.45 an ounce, its highest since December 2012. It is also the first time in 7 years that the international benchmark has breached the $1,700 level.

Asian equities sank at the start of this week as investors fled to bonds, bullion and currencies to hedge the carnage from the economic impact of the virus spread. Oil prices plunged 20 percent after Saudi Arabia slashed its official selling price.

Off-hours trading for US equity markets continued on Sunday where price of futures contracts for the S&P 500 index sank over 4 percent. Asian markets mirrored the losses on Monday morning. Indian equity indices Sensex and Nifty 50 opened 3 percent lower each.

However, gains in the precious metal's prices in India were curbed by rupee's weakness, which depreciated to 74.05 against the US dollar in morning trade.

The latest data shows that globally over 1 lakh individuals have been infected by COVID-19 and more than 3,800 reported dead. In India, at least 39 people have been tested positive for infection.