Gold and silver continued their gaining streak on Tuesday amid flight from risky assets — like equities — maintained the heightened demand for gold.
With businesses shut in several cities in India amid rising threat of coronavirus, investors are shunning equity markets. This has led to diversion of funds to precious metals, especially when they have come down from historically high levels.
Gold futures were up 0.75 per cent or Rs 476 to Rs 41,639 per 10 grams. Silver futures were up 4.95 per cent or Rs 1,875 to Rs 39,787 per kg.
Spot gold markets in India on Monday were shut due to lockdown in major states to prevent the spread of the coronavirus, according to HDFC Securities. As the virus cases climbed, the central and state governments in the country decided to lock down 75 districts to break the chain of transmission.
Globally, gold prices rose on Tuesday, following a near 4 per cent jump in the previous session after the US Federal Reserve announced unprecedented measures to support an economy which is reeling from the coronavirus pandemic.
Spot gold climbed 1.7 per cent to $1,578.83 per ounce by 0116 GMT. The metal rose 3.7 per cent on Monday, its highest percentage gain since June 2016.
US gold futures rose 1.6 per cent to $1,592.20 per ounce.
Three of the world’s largest gold refineries said on Monday they had suspended production in Switzerland for at least a week after local authorities ordered the closure of non-essential industry to curtail the spread of the virus.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , rose 1.8 per cent to 923.99 tonnes on Monday.
Palladium surged 7.3 per cent to $1,844.50 per ounce, while platinum rose 4.5 per cent to $671.11 and silver jumped 5.4 per cent to $13.97 per ounce.