Gold prices jump 1% on Friday as investors rush to safe-havens amid coronavirus pandemic

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Published: April 3, 2020 12:04:26 PM

On MCX, gold June futures were trading Rs 350 or 0.81 per cent higher at Rs 43,590 per 10 grams, while silver may futures were ruling at Rs 40,930 per kg, up Rs 1,058 or 2.65 per cent.

Gold price today, silverGold prices jumped over 1%, as record high US jobless claims for a second week in a row intensified fears of economic damage due to the coronavirus.

Gold prices jumped one per cent on Friday tracking positive trends in the global spot market on the back of record high US unemployment claims. On MCX, gold June futures were trading Rs 350 or 0.81 per cent higher at Rs 43,590 per 10 grams, while silver may futures were ruling at Rs 40,930 per kg, up Rs 1,058 or 2.65 per cent. “Gold prices jumped over 1%, as record high U.S. jobless claims for a second week in a row intensified fears of economic damage due to the coronavirus and drove investors towards the safe-haven metal. The pandemic has infected nearly 1 million people across the world and killed over 50,000 and forced countries to ensure restrictions and lockdowns to combat the outbreak. Key focus would be non farm payrolls from the US to be monitored closely,” Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers, told Financial Express Online.

Spot gold rose just 0.1 per cent to $1,613.32 per ounce, after a near 1.5 per cent surge in Thursday’s trade. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.33 per cent to 971.97 tonnes on Thursday. The number of Americans filing claims for unemployment benefits last week shot to a record high of 6.65 million, as more jurisdictions enforced stay-at-home measures to curb the coronavirus, said a Reuters report.

Gold prices likely to stay firm

The death toll from fast-spreading coronavirus pandemic continued to rise. According to AFP, there are more one million declared cases of coronavirus worldwide with at least 1,000,036 infections across 188 countries, including 51,718 deaths. “Gold prices are likely to stay firm as the ongoing fears of the health crisis due to the deadly pandemic can lead to a global recession. Monetary and fiscal stimulus measures taken by various central banks may also lift the sentiments of gold like safe havens. Meanwhile, a strong dollar and moderate physical demand are likely to limit major rallies,” Hareesh V, Head commodity research, Geojit Financial Services said.

Back home, headline indices were trading over 1.5 per cent lower on Friday. the 30-share index Sensex was trading at 27,788, down 477 points or 1.69 per cent, while the broader Nifty50 index was ruling below the crucial 8,150-mark.

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