On the MCX, gold futures contract trade with a marginal loss of 0.04% or down Rs. 16 at Rs. 40,640 per 10gm. Silver on the other hand was up in trade by Rs. 90 or 0.2% at Rs. 45,889 per kg. The losses have come as the rupee gained against the US dollar to 71.30.
In the global markets, the yellow metal retreated lower from its over one-week high as risk sentiment improved on hopes of world-level steps being taken to combat the deadly coronavirus that originated in Wuhan city of China.
Losses in Bullion Capped Despite Dollar Index Surging to 4-Month High
The dollar index scaled to its 4-month peak level on Thursday after the US reported strong set of CPI data for January month. Also there was reported a decline in weekly initial jobless claims from 210,000 to 205,000.
Spot gold slipped 0.1% to $1,574.69 per ounce as of 0427 GMT. In the previous session, it recorded its highest price of $1577.89 per ounce since February 4. US gold futures also fell 0.1% to $1,577.80. Nonetheless, further downside in the bullion has been capped due to spike in new coronavirus cases as also because of a huge influx in not just SPDR Gold ETF but overall gold-backed ETFs.
Also, worsening geo-political situation in the Middle East, the head of the influential Revolutionary Guards of Iran on Thursday said that the country will not shy away from striking the US and Israel if they prompt it to do so, added to its appeal.
Interest in Gold as Safe Haven Remains Intact
Investors' interest in gold however remains intact due to economic slowdown feared due to coronavirus outbreak as well as assumption of its impact on easy monetary policy of central banks world over.
Outlook on gold's future price: Amid coronavirus scare that has once again given a leg-up to yellow metal's safe-haven appeal, analysts believe gold prices to remain in a range.
Back home, gold in the spot market was priced Rs.39,710/10 gm for 22k and Rs. 40,910/10 gm for 24k gold.