Gold Prices Recover As Coronavirus Death Toll Crosses 630

On Friday, gold prices in India inched higher as concerns over economic damages from coronavirus weighed on the markets, boosting demand for the safe-haven asset.

Gold futures on MCX were trading 0.9 percent higher at Rs 40,387 per 10 grams and silver futures were trading at Rs 46,192 per kg.

In the international market, spot gold was up by 0.1 percent to $1,568.76 an ounce but was heading for a weekly loss of 1.3 percent on account of China's move to cut tariffs on American imports and gains in US dollar index, that improved risk sentiment.

As for the coronavirus outbreak, the death toll in mainland China reached 636 at the end of Thursday, up by 73 from the previous day, as per the country's National Health Commission.

IHS Markit said that the new coronavirus outbreak will be worse for the global economy than the 2003 SARS outbreak. While estimates vary, the SARS outbreak in China was estimated to have cost the global economy about $40 billion at the time when the country was the world's six-largest economy (accounting for 4.2 percent of GDP).

Today, China is the second-largest economy and makes for 16.3 percent of the world GDP, putting the global economy at a higher risk.

Analysts expect gold prices to move in a tight range on Friday. While concerns over coronavirus might boost appeal for the metal, an appreciating dollar from positive American economic data will cap gains.