Gold rate today rise as recession fears weigh on risk sentiment

Bullion counters rallied in opening trade on Monday as investors rushed to safe-haven counters as coronavirus cases spreading throughout the world spooked investors of a global recession.

The worldwide spread of the coronavirus and its implications on the economy had triggered the biggest weekly stock market rout since the 2008 financial crisis last week, wiping $6 trillion off global equities.

Gold futures jumped 0.74 per cent or Rs 305 to Rs 41,702 per 10 grams, while silver futures edged 1.59 per cent or Rs 706 higher to Rs 45,109 per kg.

Gold prices on Friday fell by Rs 222 to Rs 43,358 per 10 gram in the national capital in line with weak trend in global markets, according to HDFC Securities. Silver prices also declined by Rs 60 to Rs 48,130 per kg from Rs 48,190 per kg.



Globally, gold prices rose more than 1 per cent on Monday, following a steep fall across the precious metals complex in the previous session, as worries that the coronavirus epidemic could push the global economy into recession sent investors scurrying for safe havens.

Spot gold gained 1.2 per cent to $1,602.90 per ounce by 0104 GMT, having slumped more than 4 per cent in intraday trade on Friday. US gold futures rose 1.9 per cent to $1,597.10.

Palladium rose 0.7 per cent to $2,610.62 per ounce, having slumped as much as 13 per cent in the previous session. Platinum gained 1.9 per cent to $880.10, having touched a six-month low on Friday.

Silver rose 1.3 per cent to $16.88, backing away from an almost seven-month low touched in the last session.