Gold prices had risen sharply over the past three days

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Gold and silver prices fell today, tracking muted global cues and a mildly higher rupee. On MCX, April gold futures fell 0.1% to ₹40,605 per 10 gram, their first decline in three days. Silver also weakened 0.19% to ₹46,130 per kg. Gold prices in India had posted a gain of ₹500 last week, tracking higher global rates. The rupee today rose moderately to 71.37 against the US dollar. In India, gold prices include 12.5% import duty and 3% GST.

“Gold can see some profit booking at higher levels. Gold (April futures on MCX) can dip lower towards ₹40,400 while facing resistance near ₹40,700 while silver (March futures) can dip towards ₹45,800 while taking resistance near ₹46,300,” SMC Global said in a note.

In global markets, spot gold prices today edged 0.1% higher to $1,572.01 per ounce amid concerns over coronavirus. Among other main precious metals, silver and platinum were up 0.2%. Reflecting the recent price trend, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.13% to 916.08 tonnes on Friday.

Meanwhile, the director-general of World Health Organization, Tedros Adhanom Ghebreyesus, has warned that while the virus’ spread outside China appeared to be slow, it could accelerate. A WHO-led international expert mission flew to China today to help coordinate a response to the outbreak that has so far infected more than 40,000 people and killed 908 in the country.

Analysts say that though gold is getting support from concerns over the corornavirus, weaker physical demand for gold, particularly, in China is capping gains.

Jigar Trivedi, research analyst at Anand Rathi Shares, said: “MCX gold on Monday morning has opened with weak undertone due to a positive rupee. Focus will be on Fed chief Jerome Powel’s testimony at the Congress and Senate. The safe haven demand on weekly basis has improved amid ongoing virus in China. Hence overall the sentiment is likely to be positive in the yellow metal.”