Gold, Silver trade lower as WHO says too early to call coronavirus outbreak a global emergency

Gold prices opened lower on Friday as investors looked at riskier assets amid World Health Organization said it is an emergency in China only as of now and not a global cause of concern, Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares and Stock Brokers said. said. On the MCX, gold futures were trading Rs 263 lower at Rs 40,020 per 10 grams while Silver futures were also ruling lower at Rs 46,134 per kg, down Rs 246. “The appreciating dollar cap gains in the yellow metal. Prices shot up higher yesterday amid a rise in investment demand. Investors are now focusing on the US Fed’s first meet on 2020 on 28th and 29th January. For intraday sentiment may stay bearish in the yellow metal as sentiment is tilted towards equities, more riskier assets,” Jigar Trivedi said.

Spot gold fell 0.1 per cent to $1,561.86 per ounce. For the week, prices were on track to gain 0.3 per cent. US gold futures slipped 0.3 per cent to $1,561.50. “The ongoing virus threat in China continues to support gold’s safe-haven demand. Meanwhile, stable global equities and strong US dollar are likely to curb major gains in the commodity. On the technical side, prices need to break the immediate upside obstacle of $1568 to continue further upticks in the counter. Else, can expect corrective selling pressure for the day,” Hareesh V, Head Commodity Research at Geojit Financial Services said.

Apart from the coronavirus concerns, China will start celebrating the Lunar New Year from this weekend, where hundreds of millions travel to the country for holidays.

On the domestic equity front, Sensex and Nifty were trading higher on Friday. At 10.35 AM, S&P BSE Sensex was trading 192 points higher to trade at 41,579 while broader Nifty 50 index was ruling 63 points higher at 12,244.

Source: Financial Express