Gold rate today: Bullion jumps as investors rush to safety

Demand for gold and silver increased on Monday after investors rushed to safe havens as the rapidly spreading coronavirus epidemic took over 80 lives.

The virus in China has infected more than 2,000, as residents of Hubei province, where the disease originated, were banned from entering Hong Kong amid global efforts to halt the rapid spread of the outbreak.

Gold futures on MCX gained 0.53 per cent to Rs 40,564, while silver futures added 0.72 per cent to Rs 47,275.


Globally, gold prices climbed to a more than two-week high as rising concerns over the spread of a virus outbreak in China and its potential economic impact prompted investors to buy the safe-haven metal.



Spot gold rose to its highest since January 8 at $1,586.42 and was up 0.6 per cent at $1,579.94 per ounce by 0131 GMT. US gold futures advanced 0.5 per cent to $1,579.50.

Meanwhile, physical gold demand was subdued in major Asian hubs last week on account of the Lunar New Year holidays, with growing fears the virus outbreak in China could further dampen activity.

Palladium dipped 1.7 per cent to $2,385.85 an ounce. Silver jumped 0.9 per cent to $18.24, while platinum fell 0.4 per cent to $997.25.