BackGold prices today fall sharply after rising for four days
In past four days, gold prices had surged ₹700 per 10 gramTracking gold, silver rates also fell sharply today
PremiumGold and silver prices fell in India today tracking a firmer rupee and muted global prices. On MCX, gold prices fell sharply by 0.6% to ₹40,455 per 10 gram, their first decline in four days. Tracking gold, silver futures on MCX also declined 0.4% to ₹46,032 per kg. In past four sessions, gold prices had rallied about ₹700 per 10 gram. A firmer rupee pushes down the imported cost of gold in India. Domestic prices include 12.5% import duty and 3% GST. Today rupee jumped to 71.23 against the US dollar.
April gold futures can dip lower towards ₹40,200 while facing resistance near 40700 while silver (March futures) can dip towards ₹45,700 while taking resistance near ₹46,300, SMC Global said in
In global markets, gold prices were steady at at $1,570.98 per ounce after hitting a week high in the previous session. Gold drew support from concerns about coronavirus epidemic as death toll crossed 1,000 lives in China even though Asian equities were mostly higher today. Among other precious metals, palladium remained unchanged at $2,353.00 an ounce while silver was flat at $17.75.
China today reported 108 new coronavirus deaths but the number of new cases fell. There were 2,478 new confirmed cases, down from 3,062 on the previous day, China's health authorities said.
On gold traders' watch will be Federal Reserve Chair Jerome Powell's two-day address to the US Congress starting today. Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
In its January policy meeting, the US Federal Reserve kept benchmark interest rates unchanged, citing moderate economic growth and a strong jobs market.
Analysts say that on the upside gold faces resistance at $1,575 and a breach of these levels could open space for further rallies to first target of $1,600.
A top Fed official on Monday said the US economy is in good shape and the Federal Reserve should hold rates steady for the time being.
The US dollar and other safe assets like Japanese yen and US treasuries were in demand as worries about coronavirus pushed investors to safe harbours. (With Agency Inputs)
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