The downside in prices is, however, capped as the rapid spread of coronavirus outside China has raised the appeal of the safe-haven metal.
Gold prices continued to fall for the third consecutive day on February 27 hitting Rs 42,613 per 10 gram in the Mumbai bullion market as the rupee strengthened. The yellow metal had hit an all-time high of Rs 43,590 on February 24.
However, the downside is capped as the rapid spread of coronavirus outside China has raised the appeal of the safe-haven precious metal.
The rate of 10 grams 22-carat gold in Mumbai was Rs 39,034 plus 3 percent GST, while 24-carat 10 gram was Rs 42,613 plus GST. The 18-carat gold quoted at Rs 31,960 plus GST in the retail market.
While the number of fresh coronavirus cases in China has come under control, it has picked up pace in others such as Iran, Italy, South Korea, and a few European countries, among others.
Among other things, the US core durables and Q4 GDP numbers will remain in focus.
The broader trend on Comex could be $1,620-1,670 and on the domestic front, prices could hover in the range of Rs 42,200-42,950, said Damani.
The gold/silver ratio that refers to the amount of silver required to buy an ounce of gold stood at 90.60 to 1.
Silver prices fell Rs 135 to Rs 47,030 per kg from its closing on February 26.
In the futures market, gold rate touched an intraday high of Rs 42,820 and an intraday low of Rs 42,456 on MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 43,788.
Gold futures for delivery in April gained Rs 153, or 0.36 percent on the MCX trading at Rs 42,657 per 10 gram in evening trade in a business turnover of 14,859 lots. Gold contracts for June delivery were up Rs 182, or 0.43 percent, at Rs 42,892 per 10 gram in a business turnover of 8,479 lots.
The value of the April contract traded so far is Rs 3,653.52 crore and June contract saw the value of Rs 98.16 crore.
Similarly, Gold Mini contract for March rose Rs 201, or 0.47 percent at Rs 42,553 in a business turnover of 8,564 lots.
On the hourly chart, strong support in gold was seen around Rs 42,500 levels. The Relative Strength Index (RSI) was trading below 60 levels indicating low momentum in prices.
If prices sustain below the mentioned support levels on an hourly basis then we may expect prices to correct down till Rs 42,400 levels on an intraday basis, according to Axis Securities.
The broking firm advised its client to sell April Gold around Rs 42,800 level with a stop loss at Rs 42,900 and a target of Rs 42,700.
MCX Gold price is expected to trade positively with good short-term support at Rs 42,100 levels and intermediate support at Rs 42,370, according to Motilal Oswal. The broking firm advised its clients to buy targeting higher resistance at Rs 42,760-42,950 zone.
The brokerage firm said spot gold is expected to trade in a range of $1,625-1,665 range with positive bias.At 12:46 pm (GMT), spot gold gained $11.76 at $1,651.24 an ounce in London trading.