Bullion futures were in the red in domestic market on Wednesday as traders flocked to riskier assets, like stocks, riding on softening oil.
BSE benchmark Sensex gained 256 points to 41,223, while its NSE counterpart Nifty jumped 84 points to 12,140. Brent Crude futures have skid 9 per cent from their January 20 level.
Gold futures were down 0.34 per cent to Rs 40,105 per 10 gram, while silver futures were down 0.07 per cent to Rs 45,441 per kg.
Globally, gold prices were little changed after sliding 1 per cent in the previous session, as investors took stock of the economic impact of the new coronavirus and awaited the US Federal Reserve’s interest rate decision.
Spot gold remained steady at $1,565.69 per ounce by 0134 GMT. US gold futures fell 0.3 per cent to $1,565.10.
Gold prices will hold above $1,500 an ounce this year and make modest gains in 2021 as low interest rates and geopolitical uncertainty bolster its appeal, while silver prices will begin to catch up, a Reuters poll showed on Tuesday.
Spot gold may retrace into a range of $1,554-$1,558 per ounce, as suggested by a projection analysis and a rising trendline, a Reuters technical analyst said.
The depth of the fall from the Jan. 27 high of $1,586.43 suggests a reversal of the uptrend from $1,535.63. The trend consists of three waves. A projection analysis on the third wave labelled c reveals a target zone of $1,554-$1,558, formed by the 23.6 per cent and the 38.2 per cent projection levels of the wave c.
Palladium rose 0.2 per cent to $2,293.75 an ounce. Silver was flat at $17.44, having dipped to its lowest since Dec. 24 at $17.42 earlier in the session, while platinum shed 0.1 per cent to $984.68.
Source: Economic Times
