Gold price falls today ahead of two-day Fed meeting outcome, yellow metal trades at Rs 40,509 per 10 grams

Gold and silver prices were trading lower as Indian rupee opened stronger against the US dollar on Tuesday. “Comex gold was unchanged at $1,580 and MCX gold witnessed a minor correction since rupee has strengthened on Tuesday morning. Traders will observe an outcome of the Fed meeting (28th & 29th January). China’s death toll from the CoronaVirus rose to 106 and the total number of confirmed cases increased to 4,515, the National Health Commission said. The outbreak is expected to hurt the world’s second-largest economy, as Chinese authorities step up preventive measures, impose travel restrictions and extend the Lunar New Year holidays to limit the spread of the virus. Sentiment is positive for the yellow metal due to rising demand for safe-haven assets,” Jigar Trivedi, Research Analyst – Commodities Fundamental, Anand Rathi Shares and Stock Brokers said. On MCX, gold February futures were trading Rs 76 lower at Rs 40,509 per 10 grams while Silver March futures were ruling at Rs 46865 per kg, down Rs 140.

Spot gold was unchanged at $1,581.09 per ounce. On Monday, prices rose to their highest since January 8 at $1,586.42. US gold futures rose 0.2 per cent to $1,580.90, as per the Reuters news report. “Investors look forward to the US Federal Reserve’s first meeting of the year starting on Tuesday. Data showed sales of new US single-family homes fell unexpectedly in December. Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.13% to 899.41 tonnes,” Ajay Kedia, Managing Director and Research Head, Kedia Advisory said.

Back home, the equity benchmark indices Sensex and Nifty have pared opening gains to trade flat with a positive bias. S&P BSE Sensex was trading 29 points higher at 41,184.54 while the broader Nifty 50 index was ruling at 12,119. Foreign institutional investors sold equities worth Rs 438.85 crore, while domestic institutional investors (DII) were net buyers to the tune of Rs 10.51 crore on a net basis on Monday, as per the provisional exchange data showed.

Source: Financial Express