Gold prices fell on Monday as reopening of business activities to revive the economy battered by fast-spreading coronavirus dented investor sentiment. On MCX, June gold futures were down 0.10 per cent or Rs 46 to Rs 45,766 per 10 gram. Silver July futures, however, inched 0.43 per cent or Rs 187 higher to Rs 43,480 per kg. Gold prices hit a day’s high of Rs 45,838 per 10 grams whereas silver touched an intraday high of Rs 43,634 per Kg. “The strength in rupee has put pressure on the MCX gold,” Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers, said. “In the absence of any major economic release, the focus will stay on COVID-19, hence, undertone will be positive in the yellow metal,” Trivedi added.
South Korea warned of a second wave of the new coronavirus on Sunday, while new infections were accelerating again in Germany just days after its leaders loosened social restrictions. Spot gold climbed 0.2 per cent to $1,704.26 per ounce. US gold futures eased 0.4 per cent to $1,707.70. Palladium gained 0.7 per cent to $1,895.21 an ounce, platinum rose 0.7 per cent to $770.66, silver climbed 0.4 per cent to $15.51.
Bullish outlook for gold
On the back of weak global sentiments, gold hit a low of 38,400 per 10 grams on March 16, 2020, while silver futures touched Rs 33,580 per kg level. “Gold prices may hold steady with positive bias as its safe-haven demand remains on the higher side due to fears of global recession and the chances of further economic easing measures from Central Banks,” Hareesh V, Head Commodity Research at Geojit Financial Services, said. “As long as prices stay above $1665 we expect the bullish outlook to continue in the counter. An unexpected drop below the same would be an early signal of selling pressure for the day,” Hareesh added.
On the domestic equity front, headline indices were trading higher. BSE Sensex was up 307 points or 0.97 per cent at 31,950, while Nifty 50 was trading 81 points or 0.87 per cent higher at 9,332.