Gold price falls ahead of Fed meeting; trades at Rs 40,509 per 10 grams

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Gold and silver prices were trading lower as Indian rupee opened stronger against the US dollar on Tuesday. Comex gold was unchanged at $1,580 and MCX gold witnessed a minor correction since rupee has strengthened on Tuesday morning.  Traders will further observe the outcome of the US Fed meeting on 28th and 29th January.

Meanwhile China’s death toll from the CoronaVirus rose to 106 and the total number of confirmed cases increased to 4,515, the National Health Commission said. The outbreak is expected to hurt the world’s second-largest economy, as Chinese authorities step up preventive measures, impose travel restrictions and extend the Lunar New Year holidays to limit the spread of the virus.

Sentiment for the yellow metal thus is positive due to rising demand for safe-haven assets, traders aver.  On MCX, gold February futures were trading Rs 76 lower at Rs 40,509 per 10 grams while Silver March futures were ruling at Rs 46865 per kg, down Rs 140.

Spot gold was unchanged at $1,581.09 per ounce, rising to its highest since 8 January at $1,586.42. US gold futures rose 0.2 per cent to $1,580.90, as per  a Reuters news report. Data showed sales of new US single-family homes fell unexpectedly in December. Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.13% to 899.41 tonnes.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

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