Gold price today: Yellow metal retreats from highs on stimulus hopes across the world

Indian April Gold futures fell from highs on March 11 tracking weakness in international spot Gold prices as expectations of global policy measures to alleviate the economic impact from the coronavirus eased some investors’ concerns.

Bullion rose as much as 1.7 percent on Monday to its highest level since December 2012 ($1,702.56) after a rout in global equity markets and crashing crude oil prices.

“US President Donald Trump vowed to take major steps to bolster the economy, and Japan unveiled a second package of measures worth about $4 billion to cope with the fallout from the virus outbreak,” said a Reuters report.

“Oil and global equity markets recovered on Tuesday as signs of coordinated policy easing to avert a global recession soothed traders,” it said.

On the Multi Commodity Exchange (MCX), April gold contracts were trading lower by Rs 37, or 0.08 percent, at Rs 43,703 per 10 gram at 09:20 hrs.

Gold and silver prices slipped more than 1 percent on Tuesday. Global financial markets are highly volatile since the last week after coronavirus spreads to other countries, global crude oil price war and record low US 10-year bond yields.

Precious metal prices are likely to remain volatile tracking weak rupee, and expectations of some stimulus measures across the world to support the economic activity will trigger risk-on sentiment.

“Gold made a high of $1,703 per troy ounce on Monday and slipped thereon. Domestic markets are also highly volatile due to heavy sell-off in the domestic equity market and weakness in the rupee,” Manoj Jain, Director, IndiaNivesh Commodities told Moneycontrol.

“We expect both the precious metals remain volatile and continue to move in both the directions. Gold is expected to be traded in the range of 43,200-44100 and silver is expected to be traded in the range of 45,700-46,650,” he said.

Precious metal prices are likely to remain volatile tracking weak rupee, and expectations of some stimulus measures across the world to support the economic activity will trigger risk-on sentiment.

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