Home >News >India >Gold prices today fall after rising for 3 days in a row

Gold prices in India eased today after a three-day rally, tracking a decline in global rates. On MCX, June gold prices were down 0.6% to 44,800 per 10 gram. Silver futures declined 1.6% to 42,789 per kg. Gold futures on MCX had hit a record high of 45,724 per 10 gram in the previous session. In India, spot gold markets remained shut amid countrywide lockdown to prevent spreading of coronavirus.

In global markets, gold prices eased today after hitting a new one-month high in the previous session. A stronger dollar and signs of a slowdown in the new coronavirus cases in major hot spots hurt the metal's safe-haven appeal though global equities were under pressure again. Spot gold slipped 0.2% to $1,644.99 per ounce. Among other precious metals, platinum slipped 0.7% to $729.03 and silver fell 0.9% to $14.86.

The dollar was up 0.26% against key rivals, making gold costlier for investors holding other currencies.

The novel coronavirus has infected more than 1.4 million people and the death toll has risen above 82,000, according to latest data from Johns Hopkins University. The central Chinese city of Wuhan - the epicenter of the global pandemic - began allowing people to leave on Wednesday for the first time since it was locked down 76 days ago.

Inflows into gold ETFs continued to show an uptick. The holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose 0.15% to 985.71 tonnes on Tuesday.

Hareesh V, head of commodity research at Geojit Financial Services, has a bullish outlook on gold. "Gold will continue with a bullish outlook as large-scale quantitative easing programs from various central banks are likely to boost prices. Investor demand for safe havens amid ongoing fears of the global health crisis have lifted the demand of the commodity. However, a strong dollar and moderate physical demand may limit major gains in the counter," he said.

In terms of technicals, he says, rallies are likely to continue as long as prices (London spot) stay above $1606. "Next upside hurdles are seen at $1672 followed by $1702. However, consistent trades below $1620 is a signal of weak momentum," he added.

Hedge fund manager Ray Dalio thinks there are better assets to hold than cash as central banks print money and keep interest rates low in response to the coronavirus pandemic. “So I still think that cash is trash relative to other alternatives, particularly those that will retain their value or increase their value during reflationary periods (e.g., some gold and some stocks)," Bloomberg quoted him as saying. (With Agency Inputs)

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