Gold price in domestic commodity markets on Wednesday dropped 1.5% to trade below 40,000, tracking bearishness on equity markets.
Gold April futures on MCX opened lower by 50 points at Rs 40,239 per 10 gm as against its previous close of Rs 40,279. Later, the yellow metal touched the day's low by falling 926 points or 1.51% to Rs 39,318 per 10 gm.
In Delhi, price of retail gold declined to Rs 40,920 per 10 gm of 24 karat gold from Rs 42,200 per 10 gm, registered yesterday.
In line with equity markets, commodity markets are also trading volatile as virus outbreak panic has hit demand across assets.
This was in contrast to spot gold that rose internationally on hopes of measures by US Federal Reserve amid coronavirus outbreak.
Spot gold moved up after US Fed's measures to boost liquidity in the markets helped to assuage concerns among investors. The price of precious metal rose 1.12% internationally to 1,542 per ounce, after declining for two straight sessions.
Covid-19 infection cases have risen drastically outside China, hurting major economies and disrupting supply chains.
There are currently 197,496 confirmed cases and 7,940 deaths from the coronavirus outbreak as of March 18, 2020. Of these, 81,911 have recovered globally. The number of infected cases in India has increased to 142. Death toll from coronavirus in India rose to 4 by Wednesday.