In the wake of rising fast-spreading coronavirus cases in India and across the world, gold prices edged lower on Tuesday as investors continued to sell assets across markets to keep their money in cash amid heightened panic over the coronavirus pandemic, says Jigar Trivedi,Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers. As the prices continue their downward trajectory, gold analysts suggest investors to wait to buy gold. “Since, prices have nosedived dramatically yesterday, we don’t deny the possibility of rebound in the day’s session. However, weak rupee may provide further support to the yellow metal,” Jigar Trivedi said. According to the latest data from the Ministry of Health, India has 125 positive cases of COVID-19. Maharashtra has maximum 36 cases as per its data and Kerala has 22.

On MCX, the gold April futures were trading Rs 528 or 1.34 per cent lower at Rs 38,990 per 10 grams, while silver May futures were ruling at Rs 35,459 per kg, down Rs 748 or 2.07 per cent. “In the current scenario and high volatility we are not commending to buy gold, as gold market is now turning into a bear zone. We recommend gold lovers to wait to buy gold. We are expecting correction in gold towards $1380 to $1350 in comex and 38000 to 36500 levels in domestic markets,” Anuj Gupta, Deputy vice president – Research, Angel Broking said, adding losses in other investment portfolios may also add pressure on gold.

Spot gold slipped 0.2 per cent to $1,511.30 per ounce, having slumped as much as 5.1 per cent on Monday to its lowest since November. US gold futures rose 1.7 per cent to $1,511.50, according to a Reuters report.

Bearish sentiment to continue

Amid high volatility and panic selling triggered by coronavirus, analysts expect bearish sentiment to continue in the bullions in the coming days. Although Fed, ECB, BoE, BoJ and PBoC collectively take measures to support the dwindling economies from effects of coronavirus, we expect the bearish sentiment to continue in the bullions, says Jigar Trivedi.

Sell-off in equities put pressure on bullion traders

Fast-spreading COVID-19 has hit global economies significantly as epicentre is no longer China, it’s Italy and Iran now. Initially, the safe haven investment demand grew at a rapid pace however, massive selling in equities, fixed income, energy and base metals across the globe increased pressure on the bullion traders, Trivedi added. Also, European countries and the US have reported a noteworthy rise in infected cases. Seeing the current situation, agencies such as the World Bank, IMF (International Monetary Fund) and Organisation for Economic Cooperation and Development (OECD) have warned of slowdown and investors across the globe fear recessionary pressures.