Gold trades flat on Thursday amid concerns of flu-like virus in China

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Updated: January 23, 2020 10:48:53 AM

On the MCX, Gold February futures were trading just Rs 17 higher at Rs 39930 per 10 grams, while silver futures were trading Rs 114 lower at 46119 per kg.

The gold opened flat to positive as rising fears over the spread of China’s new flu-like virus supported the safe-haven metal

Gold futures on Thursday opened flat on the concern of the spread of new flu-like virus in China which supported the safe-haven metal. “The gold opened flat to positive as rising fears over the spread of China’s new flu-like virus supported the safe-haven metal. Adding to concerns, China will start celebrating the Lunar New Year from this weekend, where hundreds of millions travel to the country for holidays,” Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares and Stock Brokers, said. On the MCX, Gold February futures were trading just Rs 17 higher at Rs 39,930 per 10 grams, while silver futures were trading Rs 114 lower at Rs 46,119 per kg.

“On the Brexit front, Britain moved a step closer to its 31st January exit from the EU when the legislation required to ratify its deal with Brussels passed its final stage in parliament yesterday. Meanwhile, according to Russia’s finance ministry, gold production in Russia rose 16.2% in the first 11 months of 2019 to 337.26 tonnes from 290.3 tonnes in the same period a year,” Jigar Trivedi said.

In the domestic equity market, S&P BSE Sensex was trading 180 points or 0.43 per cent higher at 41,293.75, while broader Nifty 50 index was ruling at 12,153. “We expect the sentiment to be positive in the yellow metal in intraday.  On the MCX, Rs 40,000-40,090 are resistances and on flip side Rs 39,870 is strong support,” he said.

“Rising fears over the spread of the deadly virus in China supported the safe-haven demand for gold. However, a stable dollar, improved global economic optimism after the trade deal and easing tensions in the Middle East would limit major upside. As long as prices stay above $1535, expect upticks to continue towards the immediate and strong resistance of $1570. A direct rise above the same is required to continue the momentum, ” Hareesh V, Head Commodity Research at Geojit Financial Services said.

Spot gold was flat at $1,558.93 per ounce. US gold futures rose 0.3 per cent at $1,561. In other precious metals, palladium advanced 1.1 per cent to $2,499.44 an ounce, silver remained unchanged at $17.82 per ounce and platinum edged lower by 0.1 per cent to $1,011.15, as per the Reuters news report.

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