Higher global rates and a weaker rupee today pushed gold and silver prices higher in domestic markets. On MCX, April gold futures rose 0.38% to ?40,639 per 10 gram, extending gains to the second day. Tracking gold, silver futures on MCX rose 0.62% to ?45,781 per kg. The rupee today weakened to 71.42 against the US dollar, pushing the price of imported gold higher. Gold prices in India includes 12.5% import duty and 3% GST.
Gold can move towards ?40,750 while taking support near ?40,400 while silver can improve towards ?46,000 while taking support near ?45,500, SMC Global said in a note.
In global markets, gold prices inched higher today as a sharp jump in the death toll from a coronavirus outbreak in China pushed investors to seek the safety of bullion. Spot gold was up 0.4% at $1,571.23 per ounce.
Gold has support on the downside from worries about global growth due to the outbreak of coronavirus in China, said Abhishek Bansal, chairman and managing director at Abans Group.
China’s Hubei province, the center of the virus outbreak, today reported a surge in new cases and deaths from the epidemic after it revised the method for counting infections. Fatalities climbed by 242, bringing China’s death toll to at least 1,355. The number of infections jumped by 14,840, sending the total number of cases in China to about 60,000.
Among other precious metals, palladium fell 0.8% to $2,384.69 an ounce, while silver rose 0.5% to $17.55.
Indicating the risk averse sentiment, Asian equities were flat to lower today despite a strong finish on Wall Street. On the other hand, US Federal Reserve Chair Jerome Powell on Wednesday reiterated his confidence in the US economic outlook, even as he said he expected some drag from China’s new coronavirus epidemic.
IMF chief Kristalina Georgieva said she expects the hit to global from coronavirus to be mild but cautioned that “it is still too early to make projections”. (With Agency Inputs)
News Source:- livemint