Gold prices in India fell slightly in India, snapping a four-day rising streak. On MCX, gold futures prices fell 0.04% to ₹39,931 per 10 gram. Tracking gold, silver also edged lower. Silver futures on MCX fell 1% to 46,203 per kg. Domestic gold prices took support gains in global markets where the precious metal rose to rose to a two-week high.
In global markets, gold prices fell as much as 1% as investors booked profits after prices hit a two-week high early in the session. But losses were capped by a slide in global equities due to worries about a virus outbreak in China.
The precious metal later pared losses and climbed back up above the $1,550 level, buoyed by a low interest-rate environment and lingering geopolitical tensions.
The IMF on Monday also trimmed its global growth forecasts for 2020 and 2021. Gold is considered a safe asset during times of financial and geopolitical uncertainty.
Renewed tensions in the Middle East and the outbreak of new coronavirus in China are likely to spurt support for gold’s safe haven demand, says Hareesh V, head of commodity research at Geojit Financial Services. "At the same time, increased global economic optimism after the phase on trade deal and positive global economic releases are likely to dent major gains in the counter," he added.
"On the technical side, while prices stay above $1555 we can expect upticks to continue for the day with major resistance is seen at $1584. However, a direct drop below $1544 could negate our intraday outlook," Mr Hareesh added.
Gold prices in India rose nearly 25% last year, the biggest increase since 2011, and touched a record high of ₹41,300 per 10 gram. (With Agency Inputs)