Gold prices in India fell today, following the bearish trend from global spot gold rates as investors booked profits on positions built up in the earlier session after the precious metal hit a seven-year high.
On the Multi Commodity Exchange, Gold April 2020 Futures fell by Rs 1025 or 2.5% to 42,555 per 10 gm. On a similar note, Silver March contract also eased 1,165 points or 2.36% to Rs 48,240 per kg.
Yesterday, gold had rallied over 1,100 per 10 gram, hitting a record high of 43,788 per 10 gm, while retail gold prices for 24 karats in Delhi, had spiked to a record Rs 44,600.00 per 10 gm.
Today, contrary to the earlier rise, gold prices for 24 karats in Delhi today traded around Rs 44,000 per 10 gramme.
Internationally, spot gold fell over 1% to hit $1,642.89 per ounce, after jumping 2.5% to a multi-year high of $1,688 per ounce in the earlier session.
In the earlier session, gold prices internationally climbed to 7-year highs following as increasing coronavirus cases led to fears of prolonged global economic slowdown, sparking rush towards a safe-haven asset.
In the last 6 days of trade, (since February 18, 2020) GOLD 03 APRIL 2020 Futures has risen 5% or Rs 2300 from Rs 41K mark as concerns remained overspread of COVID-19, which led higher demand for sovereign bonds and safe-haven assets such as gold.
Internationally, Spot gold has risen 7% in a month, 15% in 3 months, 10% half-yearly. It has, however, declined 26.5& in a year's period.
In the same range, Gold Index has risen 8.5%, 13.7% and 15.4% on a similar note. Gold Futures in MCx have fallen 30% in a year.
Spike in new coronavirus cases in China and other countries like South Korea, Italy and the Middle East has taken a toll on the equity market, while gold and other safe-haven assets are on the rise as investors have turned jittery as whether the Covid-19 virus can be successfully contained. The death toll from the deadly virus in Mainland China's reached 2,663 on Tuesday after 71 more people died. Another 508 new cases were reported, up from 409 on Monday.
Commenting on gold's near term outlook, Hareesh V Head of Commodity at Geojit Financial Services said that aggressive policy easing measures taken by China to shore up the economy and moderate physical market activities will likely limit major upside on gold prices.