When trading opened for the week, 24K gold rate in India was recorded holding at Rs.40,750 per 10 grams on 17 February 2020 as global markets witnessed a slight decrease in trade volume with China taking efforts to limit the coronavirus’s impact on the economy. Prices dropped by Rs.10 from the previous session as the risk appetite among investors improved amid the positive global cues.
However, reports of the coronavirus outbreak around the world led to global equities taking the backseat, pacifying investor optimism. This led to investors banking on the bullion and gold prices in India holding at Rs.40,750 per 10 grams on 18 February 2020.
On 19 February 2020, with businesses around the world impacted by concerns over the effect of the virus’s outbreak on the global economy, gold rates in India rose by Rs.600 to trade at Rs.41,350 per 10 grams – its highest level in nearly two weeks.
The gold prices remained untouched at Rs.41,350 per 10 grams on 20 February 2020 as investors continued gravitating towards the safe-haven asset amid the exacerbating fears of the coronavirus’s impact on the economy.
To add to the woes, Apple Inc also released a surprise warning in the context of the possible impact the virus outbreak could have on the economy.
Gold prices in India surged to Rs.41,360 per 10 grams the next day before skyrocketing to a seven-year high level of Rs.42,500 per 10 grams on 22 February 2019. This was primarily due to the increase in the number of coronavirus cases around the world which led to investors seeking refuge in the precious metal.
Investors and market participant hedged on safe-haven assets such as gold and silver to safeguard their investments from the impact of the virus in the equities market.
The week came to and with gold rates in India closing at Rs.42,510 per 10 grams on 23 February 2019 – registering an incline of over 2% to trade at a seven-year high in the market.
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