Gold prices in India edged higher on Wednesday as the US Federal Reserve’s emergency rate cut roiled financial markets. This is likely to increase the demand for safe assets such as gold. “Gold prices witnessed technical correction in a morning session after surging more than 3% in the previous session as the US Federal Reserve cut interest rates to help soften the economic blow from the coronavirus outbreak. The G7 countries and central bankers have said they would use all appropriate policy tools to safeguard economies. Looking at the dollar index, we expect the sentiment to be positive for bullions after a small session of technical correction,” Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers said.

On MCX, the gold April futures were trading Rs 145 or 0.33 per cent higher at Rs 43,619 per 10 grams, while silver May futures were ruling at Rs 46,657 per kg, up Rs 279 or 0.60 per cent in Wednesday’s trade. “One can buy gold at 43200, stop loss 41900, target 43800. Gold has strong support at $1630 and resistance at $1680. In comex we expect gold may test $ 1680 levels soon,” Anuj Gupta, Deputy vice president – Research, Angel Broking Ltd told Financial Express Online.

Spot gold climbed 0.3 per cent to $1,643.76 per ounce, having registered its biggest one-day percentage gain since 2016 on Tuesday. US gold futures gained 0.1 per cent to $1,645.30, as per Reuters news. “As long as prices stay above $1560 expect buying momentum to continue with stiff resistance is seen at $1660 followed by $1700. A close below $1545 is required to negate the bullish outlook and take prices lower,” Hareesh V, Head of Commodity, Geojit Financial Services said. On Tuesday, US Federal Reserve cut interest rates by half a percentage point in an emergency move to soothe investor fears over the coronavirus’s widening fallout.

Back home, equity market benchmarks Sensex and Nifty were trading volatile. S&P BSE Sensex was trading 197 points or 0.51 per cent lower at 38,426, while the broader Nifty 50 index was ruling at 11,255, down 49 points or 0.43 per cent.