BackGold prices today fall for third day in a row
Gold prices would be supported at lower levels amid worries about the economic impact from coronavirus, say analystsStill gold has posted strong quarterly gain
PremiumGold prices in India edged lower today while silver saw some buying at lower levels, reflecting the global trend. On MCX, June gold futures fell 0.35% to ₹43,232 per 10 gram, extending decline to the third day though it has remained in a narrow range. Silver futures on MCX gained 0.3% to ₹39,925 per kg after crashing over ₹1,000 in the previous session. Still on a quarterly basis, gold has posted strong gains of about ₹4,000 per 10 gram and had reached a new high of about ₹45,000 per 10 gram earlier this month.
In global markets, gold prices edged lower today amid a rally in global equity markets and a stronger dollar. But worries about the economic impact from coronavirus lockdowns provided support to to gold at the lower level. Spot gold rates were down 0.3% at $1,616.34 an ounce. Among other precious metals, platinum rose 0.5% to $727.06 while silver dropped 0.7% to $14.02.
The dollar edged higher against a basket of six major currencies, having gained 0.8% in the previous session as investors braced for prolonged uncertainty. A higher US dollar makes dollar-denominated gold more expensive for holders of other currencies, which could subdue demand.
So far this quarter, gold prices in international markets are up about 6.5% and is set for its sixth consecutive quarterly gain. Worries about global recession and a flood of stimulus by central banks has ignited demand for the metal.
Worries over global economy and lower interest rates will support gold and this week gold may trade sideways to to positive, Bonanza Portfolio said in a note.
About two-fifths of the globe's population have now been confined to their homes due to lockdowns, while the coronavirus death toll has soared over 37,000.
This is also reflected in holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, which rose to 964.66 tonnes as on Friday.
Meanwhile, central bank of Russia, which had spent more than $40 billion building a war chest of gold over the past five years, said it would stop buying gold starting April 1 without disclosing any reason. Analysts say that with gold prices near 7-year highs and having already stashed a lot of gold in reserves, Russia may not need more. (With Agency Inputs)
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