Gold Prices Ease On Concerns Over Risk Of China Virus

On Wednesday, gold prices fell in the domestic and international markets as traders assess the impact on economic growth from a coronavirus outbreak in China.

On MCX, gold futures were trading 0.29 percent lower at Rs 39,795 per 10 grams and silver futures were down by 0.22 percent to Rs 46,040 per kg.

Globally, spot gold fell by 0.3 percent to $1,553.27 an ounce after it rose to its near two-week high in the previous session. US gold futures were down by 0.3 percent at $1,553.30 per ounce.

On Tuesday, toll from the Wuhan coronavirus in China rose to six deaths and the first case of infection was reported in the US. Stocks markets fell after the Centers for Disease Control told Reuters that a traveller from China was diagnosed with the first US case of coronavirus in Seattle.

Shares of hospitality businesses and airlines declined on fears of economic damage as tourists cancelled travel plans and airports stepped up screening.

Investors are worried about the threat of contagion as millions travel for the Chinese Lunar New Year holidays over the coming weekend.

Further, China reported a decline in gold consumption for the first time in three years in 2019.