Gold prices today slip as risk-appetite come back

NEW DELHI: Bullion counters slipped in the opening trade on Wednesday as major countries affected by coronavirus allocated funds to combat the epidemic. This led to an increase in the risk appetite of investors, making them move towards equities at the expense of bullion.

The US House of Representatives also approved an $8.3 billion funding bill to combat the spread of the virus, sending the emergency legislation to the Senate. South Korea also made a similar provision.

Gold futures dipped 0.34 per cent or Rs 148 to Rs 43,421 per 10 grams while silver futures slid 0.34 per cent or Rs 158 lower to Rs 46,525 per kg.

Gold prices zoomed Rs 1,155 to Rs 44,383 per 10 gram on Wednesday in the national capital with continuous rupee depreciation and strong buying in global safe-haven assets, according to HDFC Securities. Silver prices also jumped Rs 1,198 to Rs 47,729 per kg from Rs 46,531 per kg in the previous trade.

Globally, gold prices were little changed as stronger equities and upbeat US data countered fears that the fast-spreading coronavirus outbreak would slow the global economy.

Spot gold was up 0.1 per cent at $1,637.80 per ounce. US gold futures were down 0.2 per cent to $1,693.10.

A per a Reuters technical analyst, spot gold looks neutral in a range of $1,631-$1,653 per ounce, and an escape could suggest a direction.

The range is formed by the 23.6 per cent and the 14.6 per cent retracements of the uptrend from $1,445.18 to $1,688.66. A break above $1,653 could lead to a gain to $1,688.66.

Palladium slipped 0.2 per cent to $2,572.87 per ounce, while platinum was steady at $872.40. Silver rose 0.3 per cent to $17.22 per ounce.