Gold which rose to seven year high price in global markets due to risk-off sentiment among investors amid coronavirus scare yesterday, lost ground today reversing yesterday's gains. On the MCX, gold April contract fell to levels of 42371 per 10 gm. Nonetheless, the yellow metal opened the trading day at a price of over Rs. 43000 at Rs. 43176 per 10 gm.
Silver too lost a great deal by as much as 2.89% or Rs. 1430 per kg to trade at Rs. 47975.
Gold prices primarily declined as there was seen some firmness in the local currency which in yesterday's trade moved past levels of 72 per dollar. The currency was last trading at 71.83 per US dollar.
Also, it was suggested that the $5 trillion dollar economy aimed at by India is really idealistic which quite improved the sentiment.
Other factor that fuelled today's decline in gold prices is that traders in the market booked profits as prices peaked seven year high globally and to levels over Rs. 43000 in the domestic markets.
Nonetheless, the losses in the commodity remain capped as there is a heightened spread of the deadly virus beyond China. In Italy there have been reported seven deaths on account of the virus.