Gold prices fell sharply in India today, tracking muted global rates. Some profit-taking was also seen after strong gains in the previous two sessions. On MCX, June gold futures fell 0.72% or ₹329 to ₹45,478 per 10 gram. Tracking gold, silver rates also eased 0.26% to ₹41,137. Over the past two sessions, gold prices in India had spiked about ₹1,000 per 10 gram.
In global markets, gold prices today remained flat as risk sentiment was lifted as a slew of countries tentatively eased coronavirus lockdowns. On the other hand, tensions between the US and China over the coronavirus outbreak helped keep gold near the key $1,700 per ounce level. Among other precious metals, platinum slipped 0.1% to $764.91 an ounce, while silver fell 0.2% to $14.81 per ounce.
Meanwhile, investment demand for gold continued to tick higher. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.4% to 1,071.71 tonnes on Monday from 1,067.90 tonnes on Friday.
Gold prices are likely to remain supported on escalating tension between the US-China over origin of coronavirus, fears of deeper global economic recession and hopes of more economic easing measures from central banks, says Hareesh V, Head Commodity Research at Geojit Financial Services.
On the other hand, chances of easing coronavirus restrictions in many countries and a strong U.S dollar may cap gains in gold, he said. In terms of technicals, as long as prices (London spot) stay above $1,665 expect to continue the bullish outlook in the counter, he added. (With Agency Inputs)