Gold prices fall on Monday tracking weak global cues amid rising death toll from coronavirus outbreak and its economic impact. “MCX gold on Monday morning has opened with weak undertone due to a positive rupee. Moreover, last Friday the US reported strong employment numbers for January as employment touched 225K against 160K forecast and 147K a month ago. However, the downside is limited since WHO said the current virus is just a tip of an iceberg,” Jigar Trivedi, Fundamental Research Analyst-Commodities, Anand Rathi Shares and Stock Brokers said. Gold April futures were trading flat to negative at Rs 40,619 per 10 grams, down Rs 25, while silver March futures were ruling flat to positive with just up 14 at Rs 46,120 per kg on MCX.
Spot gold was little changed at $1,569.05 per ounce. US gold futures were flat at $1,572.70. Holdings of the world’s largest gold-backed exchange-traded fund SPDR Gold Trust rose 0.13 per cent to 916.08 tonnes on Friday, its highest since October 29, 2019, according to Reuters news report.”The focus will be on Fed head Jerome Powell’s testimony at the congress and senate. The safe-haven demand on a weekly basis has improved amid ongoing virus in China. Hence, overall the sentiment is likely to be positive in the yellow metal,” Jigar Trivedi said.
On the domestic equity front, Sensex and Nifty were trading over 0.75 per cent lower on Monday. Extending the morning losses, the S&P BSE Sensex was trading 296 points or 0.72 per cent lower at 40,844 points, while the broader Nifty 50 index was ruling at 12,000, down 98 points or 0.81 per cent. Tata Steel and M&M were among the top laggards on Sensex, down over 4.5 per cent each.