Gold Price In India Touches New High; Edges Closer To Rs 42,000

Gold futures (April 2020) on MCX touched a new high of Rs 41,798 per 10 gram on Thursday. The surge comes after gold prices in the international markets touched 7-year high in the previous session on rising concerns over the effects of coronavirus on global economic growth.

On Thursday, China lowered its benchmark lending rates, its first cut since October last year, according to Refinitiv data, to support its economy.

The country's central bank, the People's Bank of China, cut the one-year loan prime rate from 4.15 percent to 4.05 percent, and the five-year rate from 4.80 percent to 4.75 percent.

However, profit booking was seen in the international markets after spot gold rose to $1,612.62 an ounce in the previous session, the highest since 25 March 2013.

On Thursday, the bullion eased to $1,609.59 per ounce after China reported a drop in new coronavirus infection cases in Hubei. The province in the centre of the epidemic reported 349 cases on 19 February from 1,693 a day earlier and the lowest since 25 January, though it was accompanied by a change in methodology.

Gold is considered a safe-haven asset in times of uncertainties on the geopolitical front.