Gold price in India rose on Tuesday, tracking gains in global rates on expectations of policy easing by US Federal Reserve and other central banks to support the global economy dented by coronavirus. “On the expectation of a rate cut by Fed and correction in the dollar and in bond yields we can expect a rally in gold. We recommend buy in gold at 42000, stop loss 41800, target 42400. Gold has strong support at $1585 and resistance at $1620,” Anuj Gupta, Deputy vice president – Research, Angel Broking Ltd told Financial Express Online. Gold April futures were trading Rs 129 or 0.31 per cent higher at Rs 42,085 per 10 grams, while silver May futures were ruling at Rs 45,410 per kg, up Rs 415 or 0.92 per cent on Multi Commodity Exchange of India (MCX) on Tuesday.
Spot gold was up 0.4 per cent at $1,591.84 an ounce, and US gold futures settled 1.8 per cent higher at $1,594.80. Gold traders would keenly watch the outcome of Group 7 conference call today, where finance ministers will discuss the measure to contain coronavirus and its impact on the global economy.
The International Monetary Fund and the World Bank on Monday said they stood ready to help member countries address the human and economic challenges of the fast-spreading coronavirus outbreak, including through emergency funding, as per Reuters news report. “International cooperation is essential to deal with the health and economic impact of the COVID-19 virus,” the joint statement said.
Back home, erasing most of the morning gains, Sensex and Nifty were still trading half a per cent higher on Tuesday. S&P BSE Sensex was trading 191 points or 0.50 per cent higher at 38,335, while the broader Nifty 50 index was ruling above 11,200-mark, gaining 75 points or 0.67 per cent at 11,208 points.