New Delhi: Gold soared by as much as 2.8 percent on Monday to its highest level in seven years, as investors worried about global economic growth in the face of sharply rising coronavirus cases outside China.
Spot gold was 1.9 percent at $1,674.40 per ounce by 12:26. EST (1726 GMT). The session high, $1,688.66, was its highest since January 2013.
US gold futures jumped 1.7 percent to $1,676.80 an ounce.
“The markets are spooked right now,” said Bob Haberkorn, senior market strategist at RJO Futures, citing coronavirus fears.
“The concern is not about the virus precisely, it is from the economic standpoint. The Dow Jones is down about 1,000 points, the bond yields are also lower.”
There was a sharp rise in coronavirus cases reported in Italy, South Korea and Iran, with Afghanistan and Iraq reporting their first cases. However, the rate of infection in China has eased.