Gold prices climb over two-week high, fears over coronavirus prompt investors to buy gold

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Updated: January 27, 2020 4:24:28 PM

On MCX, Gold February futures were trading Rs 208 higher at Rs 40,560 per 10 grams, while Silver March futures were trading at Rs 47,276 per kg, up Rs 341 on Monday

Gold prices were trading higher on Monday, climbing to a more than two-week high. “Gold prices on MCX opened with gap up, trading at 40590.00 up by 0.58 per cent as rising concerns over the spread of a virus outbreak in China and its potential economic impact prompted investors to buy the safe-haven metal. Technically, Gold on MCX holding above 40380 can test 40640-40780 level,” Ajay Kedia, Managing Director and Research Head, Kedia Advisory said. On MCX, Gold February futures were trading Rs 208 higher at Rs 40,560 per 10 grams, while Silver March futures were trading at Rs 47,276 per kg, up Rs 341 on Monday. 

“From an economic data point of view, US will release a bunch of important data like new home sales, durable goods orders for December, consumer confidence for January, Fed & Bank of England monetary policy meet and outcome, US Q4 GDP (P) and Core PCE price index December. Hence, we expect the dollar to be volatile so as the yellow metal,” Jigar Trivedi, Research Analyst – Commodities Fundamental, Anand Rathi Shares and Stock Brokers said.

Spot gold rose 0.6 per cent to $1,579.11 per ounce. Earlier in the session, prices rose to their highest since January 8 at $1,586.42. US gold futures climbed 0.4 per cent to $1,578.30, according to Reuters. 

Back in India, equity benchmark indices were trading over 0.25 per cent lower. S&P BSE Sensex was trading 156 points lower at 41,456.71 while broader Nifty 50 index was ruling at 12,212.45, down 36 points on Monday. As per the provisional exchange data, foreign institutional investors bought equities worth Rs 659.11 crore, while domestic institutional investors (DII) offloaded shares worth Rs 417.96 crore on a net basis on Friday. 

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