Bullion counters were trading lower on Friday as traders moved to riskier assets after the World Health Organisation (WHO) stopped short of declaring the China virus outbreak a global emergency.
The WHO said on Thursday that the new coronavirus that has emerged in China and spread to several other countries does not yet constitute an international emergency but it was tracking its evolution “every minute”.
Gold futures were trading down 0.55 per cent at Rs 40,060 per 10 grams, while silver futures slipped 0.45 per cent to Rs 46,173 per kg.
Brokerage SMC Global said bullion counter may witness some profit booking. Gold can face resistance near Rs 40,500 while silver may trade range bound within Rs 46,100-46,500 range.
Spot gold fell 0.2 per cent to $1,560.50 per ounce by 0131 GMT. For the week, prices were on track to gain 0.3 per cent. US gold futures slipped 0.4 per cent to $1,559.20.
A Reuters technical analyst, spot gold may retrace into a range of $1,551-$1,554 per ounce, as it failed again to break a resistance at $1,564.
The resistance is identified as the 38.2 per cent retracement of the downtrend from the Jan. 8 high of $1,610.90 to $1,535.63. The second failure suggests a completion of a wave c from $1,545.96.
This wave could be broken down into five smaller waves. Such a structure also signals the completion of the rise from $1,546.62.
Palladium dipped 1.1 per cent to $2,432.84 an ounce, but was on track to register its worst week in five. Silver fell 0.2 per cent to $17.76 and platinum edged lower by 0.2 per cent to $1,000.07.
Source: Economic Times
