Gold prices in India slipped for the second consecutive day on Friday as investors rushed to book profits amid recession fears due to the coronavirus (COVID-19) pandemic. On MCX, gold June futures were trading Rs 1,317 or 2.8 per cent down at Rs 45,941 per 10 grams. While silver May futures were ruling at Rs 43,025, down Rs 1,230 or 2.78 per cent. Gold prices hit a fresh record high in Wednesday’s trade. “Gold retreated after climbing yesterday as US jobless claims fell marginally and on hopes virus-led restrictions will ease, though concerns of a global recession kept bullions’ appeal intact,” Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers, told Financial Express Online. Donald Trump announced a plan to reopen the economy which lifted the sentiment and gold witnessed a healthy correction, still, the undertone is positive due to strong ETF inflows. “We believe the yellow metal may stay under pressure today,” Jigar Trivedi added.
A chance to buy gold at lower levels
Spot gold eased 0.1 per cent to $1,716.56 per ounce US gold futures slipped 0.1 per cent to $1,730.30. The metal was up about 1.6 per cent for the week so far, on track to post its second consecutive weekly gain. Palladium rose 1.7 per cent to $2,190.78 per ounce and platinum gained 0.4 per cent to $786.30, while silver fell 0.7 per cent to $15.51, Retuers reported. “The expectation of some relaxation in lockdown given by the many economies may give some optimism to the world economy. But the cases from covid 19 are still increasing and IMF cut down the global growth. Lower levels in gold may be a chance to buy gold. Traders can buy gold at 46,000, stop loss of 45500 with a target price of 46,800,” Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd, told Financial Express Online.
Reverse repo rate cut pushed Sensex, Nifty from day’s highs
Meanwhile, the announcement of reverse repo rate cut by RBI pushed domestic equity benchmarks BSE Sensex and Nifty 50 to fall from their day’s highs. Sensex was trading 526 points or 1.72 per cent higher at Rs 31,129, while Nifty 50 index was ruling below 9,150, down 140 points or 1.55 per cent.