Gold Prices Surge Above Rs 40,000 As Coronavirus Death Toll Rises Sharply To 80

On Monday, gold futures on MCX rose to Rs 40,619 per 10 grams on global cues. Silver futures showed similar movement, rising to Rs 47,364/kg.

In the international market, gold prices climbed to a more than two-week high on the rise in concerns over the spread of the virus outbreak in China and its potential to impact the global economy.

Spot gold rose to $1,586.42, its highest since 8 January (post the missile attacks between the US and Iran).

The Chinese officials released data on the infection from the fast-spreading coronavirus and said that as of Sunday, there are 2,744 confirmed cases, including 461 people in critical condition and the death toll rose to 80.

The deadly-pneumonia like virus, that was first identified in the Chinese city of Wuhan, has since spread to other major cities such as Beijing, Shanghai, Macao, and Hong Kong.

China has extended the Lunar New Year holiday to 2 February to reduce the risk of people gathering in public spaces and be exposed to infection.

Travel restrictions have been imposed across Chinese cities, which will likely reduce economic activity in the country.

The economic impact of the fast-spreading virus has prompted investors to increase buying of the safe-haven metal. Stock markets in Asia slipped and the yen jumped.

Cases of infection have also been reported in the US, Taiwan, Singapore, Japan, South Korea, Malaysia, Vietnam, France and Australia.