Gold, silver prices fall today as concerns of slowdown due to coronavirus continues

Gold prices inched lower on Friday even as concerns over coronavirus and its impact on the economy weighed the investor sentiment. “Gold faltered on Friday after witnessing a sharp rally on Thursday due to a weak dollar. The initial jobless claims in the US rose last weak as compared to a week ago. Although WHO in the latest report mentioned that there is no need to panic and no need to cancel trade and travel with China, the safe-haven demand continued to rise due to concerns of a slowdown due to the virus. Meanwhile, the US has confirmed the 1st case of the virus in Illinois. The flu-like virus, which originated in China and has spread to over 15 countries, has disrupted global travel and prompted several companies to suspend operations in China. The sentiment is still bullish for the yellow metal however, a technical correction is possible,” Jigar Trivedi, Research Analyst – Commodities Fundamental, Anand Rathi Shares and Stock Brokers said.  On MCX, gold April futures were trading Rs 376 or 0.92 per cent lower at Rs 40,697 per 10 grams, while silver March futures were trading at Rs 46,384, down Rs 530 or 1.13 per cent on Friday.

The World Health Organisation on Thursday declared the coronavirus outbreak an international emergency. The China virus has already killed 170 people in China as cases spread to other countries as well. 

Spot gold dropped 0.1 per cent to $1,571.77 per ounce. US gold futures declined 0.8 per cent to $1,570.70. “Gold trading range for the day is 40535-41369. Silver trading range for the day is 45314-47766,” Ajay Kedia, Managing Director and Research Head, Kedia Advisory said.

Meanwhile, India’s gold demand fell 9 per cent year-on-year to hit a three-year low of 690.4 tonne in 2019, the World Gold Council (WGC) said on Thursday. Despite festive consumption, the demand crashed 18% in the December quarter to 194.3 tonne.

Back home, domestic equity benchmarks Sensex and Nifty pared morning gains and were trading flat. S&P BSE Sensex was trading flat at 40,918.89, while the broader Nifty 50 index was ruling at 12,053.