Gold prices fell today amid profit-booking by investors as the death toll from coronavirus in China has spiked. “MCX gold opened with small losses however, depreciating rupee coupled with weak industrial production for January from the US supported the yellow metal. The number of reported new cases of coronavirus in China rose, as authorities imposed tough new restrictions on movement to prevent the spread of the disease which has now killed more than 1,700 people,” Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers said. Gold April futures were trading lower at Rs 40,911 per 10 grams, down Rs 68, while silver March futures were trading Rs 198 higher at Rs 46,425 per Kg on MCX.
Spot gold was little changed at $1,582.83 per ounce, having touched its highest since February 3 at $1,584.65 on Friday. US gold futures were steady at $1,585.90. The death toll from a coronavirus outbreak in mainland China reached 1,770 as of the end of Sunday, up by 105 from the previous day, the country’s National Health Commission said on Monday morning, as per Reuters news report.”Today is a holiday in the US hence there may not be volatility in the gold market but the sentiment is still positive. Investment demand rose marginally in SPDR Gold ETF from 922 tonnes as on Thursday to 924 on Monday morning,” Jigar Trivedi said.
On the domestic equity front, Sensex and Nifty were trading flat. S&P BSE Sensex was trading 34 points or 0.08 per cent lower at 41,224, while the broader Nifty50 index was ruling at 12,095, down 19 points or 0.15 per cent. In commodities, oil prices edged lower on Monday ahead of economic data on the impact of coronavirus on demand. Brent crude was at $56.99 a barrel, down 33 cents after rising 5.2 per cent last week, the biggest weekly gain since September 2019. US West Texas Intermediate crude fell 13 cents to $51.92 a barrel, after a 3.4 per cent gain last week, according to Reuters.