Coronavirus Impact: Uncertainty In Global Markets Push Gold Prices To Hit Record High

Analysts observe that the inflow of new money digitally printed by the central banks and huge debt pile by the states to fight the negative impact of the coronavirus (are) helping gold.

Gold prices in India recorded a new high on Wednesday surpassing the Rs 46,700 level per 10 gram. (File Photo/ Getty)

New Delhi: In a volatile market where the trading sessions are marked by losses and gains, gold prices in global markets rose to its highest level in more than seven years marked due to uncertainty in financial markets caused by the outbreak of Covid-19. Spot gold was up 0.4 per cent at USD 1,721.54 per ounce at 1202 GMT, having touched its highest since November 2012. US gold futures were steady at USD 1,761.80. Other precious metals such as silver dipped 1.1 per cent to USD 15.64, while platinum inched around 1.1 per cent to USD 783.25 an ounce. Gold prices in India recorded a new high on Wednesday surpassing the Rs 46,700 level per 10 gram in the futures market. It recorded a surge of over 2 per cent to Rs 46,255 per 10 gram, hitting a new record of Rs 46,385 in the previous session. As an instrument for investment, gold is considered a safe haven and often seen as a hedge against inflation and currency debasement. Analysts observe that the inflow of new money digitally printed by the central banks and huge debt pile by the states to fight the negative impact of the coronavirus (are) helping gold. The prices of the safe-haven surged due to uncertainty amind global pandemic Covid-19 and the continued inflow into the gold-backed exchange-traded funds. The price rise came along with the rally gains in global markets after Chinese trade data were better than expected and countries around the world trying to kick start their by partly lifting the restrictions imposed duet to the global pandemic. It has been seen in the past that bullion has moved in line with stock markets with recent sharp sell-offs propelling investors to sell the metal for covering losses elsewhere.