2020.02.2409:41:00UTC+00Gold Prices Rally On Safe-haven Buying

Gold prices rose over 2 percent on Monday as the spread of the coronavirus outside China deepened worries about a hit to global growth.

Spot gold climbed 2.4 percent to $1,682.46 per ounce, while U.S. gold futures were up 2.2 percent at $1,684.85.

The virus has now killed 2,592 people in China, which has reported 77,150 cases. The rapid spread of the deadly virus in several countries outside China left investors concerned about a hit to demand.

South Korea raised its coronavirus alert to the "highest level" for the first time in a decade, following a rapid spike in cases over the weekend. The total number of cases so far in the country total about 763.

Italy's sovereign bonds dropped as the country became Europe's epicenter for virus cases over the weekend.

Iran has confirmed 43 cases and eight deaths, with most of the infections in the Shi'ite Muslim holy city of Qom. Saudi Arabia, Kuwait, Iraq, Turkey and Afghanistan imposed travel and immigration restrictions on the Islamic Republic.

The World Health Organization said it is worried about the growing number of cases without any clear link to China.