Gold prices saw a dip in futures trade on February 28 mostly due to profit-booking and muted demand by jewellers in the spot markets.
Gold prices witnessed healthy gains in the morning trade as investors continued buying safe-haven assets avoiding riskier equities amid rising fears of coronavirus becoming a pandemic.
In the global markets, too, gold prices remained elevated as worries intensified that the rapidly spreading coronavirus could turn into a pandemic and derail global economic growth, media reports said.
Spot gold gained 0.2 percent to $1,645.79 per ounce and was up about 0.1 percent for the week.
On the Multi Commodity Exchange (MCX), April gold contracts were trading lower by Rs 30, or 0.07 percent, at Rs 42355 per 10 gram at 18:30 hours.
A steep fall in equities and the Indian currency bolstered the rise of gold.
The Indian rupee opened lower by 38 paise at 71.93 per dollar versus the previous day's close of 71.55. The benchmark Sensex plunged over 1,000 points and the Nifty fell below 11,400 in early deals.
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Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
Overall, the trend remains positive. RSI & MACD are signalling trend to be heavy. Some profit-booking could be on cards from higher levels indicated on the charts.
For the day, Rs 42,450-42,625 will act as resistance and Rs 42,250-42,025 as supports.
Expert: Manoj Jain, Director, IndiaNivesh Commodities
Both the precious metals--gold and silver-- opened on a positive note but were unable to hold the gains and closed in the red on February 27.
Despite the selloff in global equities, a correction in the dollar index, downbeat US unemployment claims and durable goods orders data, both the precious metals closed negative.
Gold broke crucial support of $1,640 per troy ounce and silver $17.70 per troy ounce in intraday trade. At MCX, gold tested the lows of Rs 42,322 and silver made a low of Rs 46,064.
Coronavirus outbreak has created panic in global financial markets and precious metals have also been hit.
"We expect both the precious metals to remain volatile and gold is expected to be traded in the range of Rs 42,000-42,700, silver is expected to be traded in the range of Rs 45,600-46, 700," said Jain.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.