Gold prices fell sharply in India today, tracking a similar movement in global rates. On MCX, April gold futures fell 1.7% or 750 per 10 gram to 43,600 in the evening session. Silver futures also fell sharply by 1.44% to 46,040 per kg. Gold prices in India have been volatile in recent days after hitting a record high of 44,961 per 10 gram. Trading on MCX was closed for the first session on account of Holi.

In global markets, gold prices fell more than 1% today as global equities stabilised after biggest selloff since financial crisis. Spot gold declined 1.4% to $1,656.24 per ounce, after jumping above the key $1,700 level in the previous session. Among other precious metals, palladium rose 0.5% to $2,502.99 per ounce while silver gained 0.2% to $17.01, while platinum rose 1.5% to $875.24.

Hopes for global stimulus measures to cushion the economic impact of the coronavirus outbreak today lifted riskier assets. US President Donald Trump has announced that he would take "major" steps to gird the economy against the impact.

Bond yields in US also rose from historic lows while on the Wall Street Dow moved higher after Monday's rout.

The US Federal Reserve last week delivered emergency interest rates cut to cushion the world's largest economy from the virus impact. Some analysts expect another cut at the Fed's March 18 policy meeting.

Reflecting the risk-off mood across the globe, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose to 30.99 million ounces, its highest since October 2016.

Despite the recent surge in prices, gold has seen a huge volatility. Though gold is viewed as a safe haven popular during times of turmoil, its ride has been bumpy this month as the need to raise cash has prompted some investors to sell the metal. At the same time, increasing bets that the Federal Reserve will cut borrowing costs are boosting the appeal of the non-interest-bearing asset.

Gold prices could see some consolidation once financial markets stabilize but the overall outlook is still positive as risk factors for global economy continue to rise, says Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

Some analysts expect gold to keep climbing. UBS Group AG’s wealth-management unit predicts prices could rally toward $1,800 within weeks, while Citigroup Inc. sees the metal surging to $2,000 by the end of 2021.

(With Agency Inputs)

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