Gold price today fall sharply, silver rates decline2 min read . Updated: 24 Jan 2020, 01:11 PM IST
- Gold prices have been volatile over last few days
- Silver rates also saw a sharp fall today
Gold and silver prices fell today in Indian markets after the WHO said that the new virus that has emerged from China does not yet constitute an international emergency. On MCX, gold futures prices fell 0.52% to ₹40,075 per 10 gram. In the previous session, gold prices had spiked 0.8% amid concerns over China virus outbreak. Silver prices also fell sharply today. Silver futures on MCX fell 0.4% to ₹46,177 per kg.
Gold is seeing some profit-taking today, says SMC Global. Weighing on gold is also the firmness in US dollar against a basket of currencies after the European Central Bank kept interest rates unchanged at its latest policy meeting, it added.
Gold can face resistance near ₹40,500 while silver may trade range bound within ₹46,100-46500, SMC Global added. Gold trades are now focused on the US Federal Reserve's first meeting, scheduled on January 28-29.
In global markets, gold prices fell fell 0.2% to $1,560.50 per ounce while silver fell 0.2% to $17.76.
Hareesh V, head of commodity research at Geojit Financial Services, said gold has support at $1535 an ounce. A direct rise above the immediate and strong resistance of $1570 is required to continue the momentum, he added.
Meanwhile, the holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.2% to 900.58 tonnes.
Jigar Trivedi, research analyst at Anand Rathi Shares & Stock Brokers, said: “Gold edged lower today as investors looked at riskier assets amid World Health Organization said it is an emergency in China only as of now and not global cause of concern. The appreciating dollar cap gains in the yellow metal. Investors are now focusing on the US Fed’s first meet on 2020 on 28th & 29th January. For intraday the sentiment may stay bearish in the yellow metal as sentiment is tilted towards equities, more riskier assets."
Abhishek Bansal, Abans Group of Companies, says gold prices may remain sideways in near term. "Rising fears over the spread of the deadly virus in China supported the safe haven demand for gold. However, a stable dollar, improved global economic optimism after the trade deal and easing tensions in the Middle East would limit major upside," he added.
In terms of physical demand, the lunar year holiday starting later this week will be supportive of gold prices, say analysts. Demand generally picks up in China and Singapore during the lunar New Year celebrations. (With Agency Inputs)