Gold prices fall today amid spike in coronavirus cases, still trade above Rs 46,000; silver rates rise

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Published: May 8, 2020 11:05:14 AM

On MCX, gold June futures were trading Rs 153 or 0.33 per cent down at Rs 46,008 per 10 grams. Silver July futures were ruling at Rs 43,265 per kg, up Rs 142 or 0.33 per cent.

gold priceFor the next week, we are expecting a positive trend in gold due to dovish data from the US.

Gold prices fell today after a two-day rally on the back of rising coronavirus patients in India. As businesses and economic activities reopened in the country, the total number of COVID-19 patients rose sharply to surpass 56,000-mark with a death toll near 1,900. On MCX, gold June futures were trading Rs 153 or 0.33 per cent down at Rs 46,008 per 10 grams. Silver July futures were ruling at Rs 43,265 per kg, up Rs 142 or 0.33 per cent. “Trade negotiators from the United States and China will hold a phone call as early as next week about progress in implementing the Phase 1 trade deal, however, it may not provide any details on the next phase, especially amid Covid-19 outbreak. Hence, the sentiment is positive for gold” Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers, said.

During this week, gold traded in a range-bound manner. Gold prices hit a high of Rs 46,377 and a low of Rs 45,311 per 10 grams this week. “Physical demand is still not there but ETF demand for gold increased and touched a lifetime high of 3355 tonnes,” Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd said. “For the next week, we are expecting a positive trend in gold due to dovish data from the US. The expectation of negative interest rates will also support bullion prices. Gold may test $1730 to $1750 levels next week,” Anuj Gupta added.

Globally, spot gold slipped 0.2 per cent to $1,713.97 an ounce while US gold futures were steady at $1,725.70. Palladium rose 1 per cent to $1,873.91 per ounce, platinum gained 0.3 per cent to $765.51, while silver fell 1.5 per cent to $15.27. Comex gold also weakened as appetite for riskier assets improved after strong corporate earnings. Apart from this, investors awaited the US jobs report for the month of April to gauge the economic impact of coronavirus-led lockdown restrictions.

On the domestic equity front, Sensex, Nifty were trading with gains, in line with their Asian peers. BSE Sensex was trading 31,906.63, up 463.25 points or 1.47 per cent. Similarly, the Nifty 50 index was ruling at 9,335, up 136 points or 1.48 per cent.

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