Gold price today: Yellow metal trades lower amid rising fears of coronavirus

The yellow metal traded lower amid profit booking on February 17 as investors closely monitor the impact of China's coronavirus on global economy.

The February gold contracts fell 0.19 percent or Rs 76 to Rs 40,907 per 10 gram on the MCX at 09:37 hours.

It touched an intraday high of Rs 40,907 and low of Rs 40,851 in morning trade.

However, silver futures gained 0.30 percent or Rs 138 to Rs 46,365 per kg after hitting an intraday high of Rs 46,390 and low of Rs 46,308 per kg.

In the international market, gold futures declined 0.05 percent to $1,585.50 per troy ounce while silver futures traded at $17.825 an ounce, up 0.51 percent.

"The downside in the bullion was limited as investors anticipate Jerome Powell & Christine Lagarde to provide stimulus due to fears of slowing global growth. Nationally, the virus has infected over 70,000 people and killed more than 1,700. The jump in new cases puts extra pressure on the Chinese government to treat thousands of patients, many of whom are in mass quarantine centres or in isolation facilities," Jigar Trivedi, Fundamental Research Analyst - Commodities at Anand Rathi Share and Stock Brokers said.

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Last week gold prices had gained around 1 percent and silver also closed on a positive note both in international as well as domestic markets.

Despite strength in dollar index both the precious metals gained amid fear of coronavirus and weaker than expected US consumer spending and industrial production data.

"At MCX, if gold prices sustain above Rs 40,770 per 10 gram, could extend rally towards Rs 41,100-41,330, while Rs 40,500 act as a major support for gold," Manoj Kumar Jain of IndiaNivesh.

"If silver prices sustain above Rs 46,000 per kg, then could extend rally towards Rs 46,500-46,750, while Rs 45,850 act as a major support for silver," he added.

Both the precious metals breached crucial resistance of $1,584 and $17.70 per troy ounce respectively.

"We expect both the precious metals remain volatile this week and buy on deep strategy will work as fear of coronavirus persist and expectations of slower global growth in the year 2020," said Manoj Kumar Jain.

"If gold prices sustain above $1,584, could extend rally towards $1,592-1,600 levels, while $1,572 act as a major support for gold. If silver prices sustain above $17.70, could extend rally towards $17.84-18 per troy ounce, while $17.55 act as a major support for silver," he added.

FOMC and EBC minutes will be out this week, hence traders might take cues from the same for further confirmation.

"The safe-haven buying has emerged in both the greenback and the yellow metal too. If we look at Comex gold closely, $1,545 to $1,590 is a consolidation zone and we believe this may continue for the next couple of weeks too with a positive undertone. Once $1,590 is broken with strong volume support it may unleash an unprecedented force in the gold market. Gold's consolidation in recent weeks is not yet over, but everything points to a break above the $1,590 mark by spring," Jigar Trivedi said.