Gold prices were flat today in Indian markets after a sharp rise in the previous session. On MCX, April futures were down 0.06% to ₹40,220 per 10 gram after rising about ₹900 in the previous session. Silver futures on MCX however moved higher today after getting battered over the previous few days. Silver rose 1.2% to ₹35,885 per kg. Domestic gold and silver prices have remained volatile this month, following a similar pattern as that of global rates. Earlier this month gold prices had hit an all-time high of about ₹45,000 per 10 gram before seeing a sharp fall from that level.
Gold prices in India include 12.5% import duty and 3% GST. The rupee was trading higher at 74.02 per US dollar as compared to previous close of 74.24.
MCX gold futures (April) have resistance at ₹40,850 and support at ₹39,280, Geojit Financial Services said in a note.
In global markets, gold prices advanced today after many governments and central banks announced stimulus measures handle the economic fallout of the coronavirus outbreak. Spot gold rose 0.7% to $1,538.63 per ounce while silver rose 1.7% to $12.81 after eight straight sessions of falls and platinum gained 0.8% to $666.38.
The rebound in gold prices comes after the precious metal suffered its biggest weekly fall last Friday in decades amid flight to raise cash as equity markets suffered a big selloff.
Gold may see a choppy trade in the range of $1,565-1,485 level and the breaching of any of the sides would suggest fresh direction to the commodity, Geojit Financial Services said.
Federal Reserve on Tuesday announced a series of moves aimed at bolstering liquidity and improving investor confidence, signaling it will intervene in short-term credit markets. Analysts said the Fed’s move to launch a financial crisis-era program to support US corporates helped support gold prices.
Also in the US, the Donald Trump administration proposed a massive stimulus package that could approach $1 trillion, a rescue initiative not seen since the Great Recession. Trump wants $1,000 checks sent to the public within two weeks and is urging Congress to pass the eye-popping stimulus package in a matter of days.
Britain also launched a new lending scheme to provide short-term bridging finance for large businesses hurt by the spread of coronavirus, which will be run and funded by the Bank of England.