Gold prices today fall for second day, silver rates decline
NEW DELHI [Maha Media]: Gold prices edged lower in Indian markets today, tracking muted global cues. On MCX, April gold futures fell 0.12% to ?40,362 per 10 gram, extending losses to the second day. Tracking gold, silver also edged lower today with futures on MCX declining to ?45,625 per kg. In the previous session, gold prices had slipped about ?250 per 10 gram while silver nearly ?500 per kg.
Gold is likely to see some selling pressure at higher levels, says SMC Global. Gold can dip lower towards ?40,200 while facing resistance near ?40,600 while silver can dip towards ?45,500 while taking resistance near ?46,000, the brokerage said in a note.
Gold prices were flat in global markets today although uncertainty over the impact of the outbreak supported the safe-haven metal. Risk concerns about the coronavirus epidemic remains in place while on the other hand positive economic data from the US has supported risk assets like equities, said Abhishek Bansal, chairman and managing director of Abans Group.
Spot gold was flat at $1,567.62 per ounce. Among other precious metals, palladium inched up 0.1% to $2,344.20 an ounce, silver was flat at $17.64, and platinum shed 0.3% to $966.41. China's senior medical adviser on Tuesday said that the coronavirus outbreak may be over by April even though the death toll surpassed 1,100.
Also on Tuesday, US Federal Reserve Chair Jerome Powell told Congress that the U.S. economy is in a good place but he cited the potential threat from the coronavirus in China.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or ETF, rose 0.67% to 922.23 tonnes on Tuesday.
Back in India recent data showed that gold exchange-traded funds or ETFs in India saw a net inflow of ?200 crore in January, the highest infusion in seven years. It also marked the third consecutive monthly inflow in gold exchange-traded funds (ETFs). Association of Mutual Funds in India (Amfi) data showed a net sum of ?202 crore was pumped in gold-linked ETFs in January as compared to ?27 crore in the preceding month.
Analysts attributed the inflow to geopolitical tensions in different parts of the globe, global slowdown concerns and worries over the impact of the coronavirus.