Gold prices rose in Indian market on Wednesday on the back of rising coronavirus cases across the globe amid skepticism about Washington’s stimulus package to combat the virus. “After yesterday’s truncated session, the yellow metal is again up in tandem with international prices. Looking at the coronavirus situation, the investment demand has not stopped yet. On the MCX we expect sentiment to remain positive only for intraday today. The resistance levels would be 43800-43900 and on flip side support levels would be 43650-43550,” Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers said. Gold April futures were trading a tad higher at Rs 43,810 per 10 grams, up Rs 70 or 0.16 percent, while the silver May futures were ruling Rs 352 or 0.76 per cent higher at Rs 46,474 per kg on MCX in Wednesday’s trade.
Earlier on Monday, Gold prices jumped past the $1,700 per ounce level for the first time since late 2012. Spot gold was up 0.4 per cent at $1,656.37 per ounce, having fallen nearly 2 per cent on Tuesday on hopes for global stimulus measures. US gold futures slipped 0.2 per cent to $1,656.70, Reuters reported. “On the back of expectation of further rate cut by the central bank and lower global growth coupled with a lower equity market, the safe haven demand of gold may increase. We have already seen the demand for gold against the risk in other asset classes. We recommend to buy gold at 43700, stop loss at 43450, target 44300. In comex gold has strong support at $1645 and resistance at $1710. We expect soon gold may test $1710 levels,” Anuj Gupta, Deputy vice president – Research, Angel Broking Ltd said.
The total number of infected cases from novel coronavirus in mainland China rose to 80,778 as of Tuesday, while more than 116,000 people have been infected globally. Back home, the total number of confirmed cases in India has jumped to 50.