Gold prices on MCX declined almost 1% on Tuesday, tracking spot gold prices from overseas, as domestic markets recovered from cautious stance amid coronavirus fears.
Policymakers worldwide have continued to ensure a globally coordinated response to the coronavirus pandemic by closing borders, banning travel and assuring liquidity infusion into the system, in a move to curb economic fallout from the virus.
On MCX, gold futures for April month fell to Rs 39,197 per 10 kg, down Rs 378 or 0.96% from it previous close of Rs 39,518 per 10 kg.
The appreciation in rupee also led to the fall in retail gold prices. Retail gold in Delhi traded has fallen from the recent peak of Rs 45,500, hit in the last week to Rs 42,200 per 10g for 24k gold (99.9%) today.
Gold price have closed higher in the last few trading sessions, owing to the bearishness in the equity market as investors rushed to safe-haven assets amid the virus pandemic, that has caused global growth concerns.
Although, Gold price internationally fell for the second straight session as panic overshadowed the equity and commodity markets.
Spot gold fell more than 1% today to $1,496.78 per ounce, after falling 5.1% on the previous day to its lowest since November 2019.
Since early March 2020, spot gold has fallen 14% from $1,700 mark 1,700 and leveled back down to $1,1450 per ounce, last seen in November 2019.
According to the daily technical outlook given by Geojit Financial Services, weak momentum may continue as long in gold futures, as prices stay below $1,535.
"Immediate support is seen at $1,470. However, a close below the same is required to trigger major liquidation pressure. A direct turn above $1,545 would take prices higher later," the report added later.
For MCX Gold April Futures, the report further estimated Resistance at Rs 39,900 and support at 39,280.
Besides the outbreak in China, the Covid-19 infection cases have risen drastically outside China, hurting major economies and disrupting supply chains. There are currently 182,605 confirmed cases and 7,171 deaths from the coronavirus outbreak as of March 17, 2020. Of this, 79,881 have been recovered globally.
The number of infected cases in India has increased to 129. The death toll from coronavirus in India has risen to 3 on Tuesday.