Gold price today: Yellow metal extends gains as coronavirus spreads

Gold prices in India moved higher, tracking gains in global markets as heightened fears of the economic impact of the coronavirus prompted investors' flight for the safe-haven asset.

Gold prices jumped internationally as rising number of cases of coronavirus in China and city lockdowns there sparked concerns of a global outbreak.

Spot Gold on Monday traded 8.60 points higher at USD 1,579, trading near a 7-year high of $ 1,610 an ounce.

Global stocks fell on Monday too, post a second confirmed case of the virus on US soil. The latest coronavirus outbreak has infected more than 2,700 people globally and killed 80 in China.

The ability of the coronavirus to spread is getting stronger and infections could continue to rise, China's National Health Commission said on Sunday.  

Tracking gains in international spot prices, coupled with depreciation of rupee against the US dollar, physical gold or retail gold price traded around Rs 41,600 in Delhi.

Gold February futures contract in India rose Rs 267 or 0.66% to the intraday high of 40,619 per 10 gm today on the MCX. In a similar trend, silver futures on MCX jumped 0.66% or nearly Rs 308 to Rs 47,243 per kg.

Amid the disease outbreak, oil prices plummeted over 2% today to $59.33 per barrel.

Last week, Gold rose 1% ending at $1,571 per ounce, after death toll rose in China.

"Worries over the spread of new deadly virus in China and fears about its potential economic impact will lift gold's safe haven demand further. A selloff in equities and other risky assets also prompt investors to trust gold. At the same time, a strong US dollar may probably limit major gains in the counter, said Hareesh V, Head Commodity Research at Geojit Financial Services.

Commenting on the technical trend of the yellow metal, he further added," As long as prices stay above $1,568, expect rallies to continue with strong resistance is seen at $1592 followed by $1,610 levels. A direct drop below $1,548 would negate any bullish expectation."

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