Gold and Silver Prices Fell Amid Coronavirus Outbreak

In India, gold and silver prices decreased as global rates started falling. On Multi Commodity Exchange, December gold futures eased 0.14% and settled at ₹50426 per 10 gram while silver slipped by 0.06% and reached ₹60100 per kg. Significantly, gold and silver witnessed declines in the previous session. Gold prices on Multi Commodity Exchange dropped ₹450 per 10 gram during the last session, which equals 0.9%. Whereas silver had declined by 3.3% per kg, which equals ₹2080.

Gold prices traded flat in today’s global market after a massive decline in the previous session. Spot gold slightly changed and reached $1,877.83 per ounce, while at an earlier session, it dropped 2%. Meanwhile, the white metal increased by 0.1% and settled at $23.43 per ounce, whereas platinum declined 0.1% and touched $866.96.

Remarkably, the dollar index was higher versus a basket of six major currencies. Fears of economic damage from a new wave of coronavirus in Europe kept the greenback firm.

According to Geojit Finance, gold and silver have decreased on firm dollar and uncertainty over U.S. fiscal package talks’ progress.

France’s lockdown hit the sentiment in financial markets

Besides, the yellow metal prices faced pressure as U.S. lawmakers have failed so far to pass a fresh stimulus. Additionally, Emmanuel Macron, France’s President, decided to shut down the country for a month, which hit the sentiment in financial markets. Germany announced that it would impose drastic new curbs. Particularly, after experts warned hospitals would soon be overwhelmed.

The sharp rise of coronavirus cases across Europe has forced governments across the continent to put containment measures.

Moreover, Golding in SPDR Gold Trust or gold ETF declined by 0.67% and settled at $1,258.25 tonnes on Wednesday.

Cases Europe indeed increases dramatically. However, the European Central Bank is expected to resist the pressure to unveil fresh stimulus measures. But, will likely pave the way for action in December.

Kodak Securities made a statement, according to which gold may continue to see choppy trade as greenback and equity markets may stay volatile as market players position for U.S. elections. They say they maintain buy on dips view on expectations that gold may benefit from safe-haven buying amid increasing challenges to the global economy.

On silver, the brokerage reported that the while metal might remain directionless with gold and industrial metals as more clarity is awaited on U.S. stimulus and the economic impact of virus-related restrictions. However, they foresee the yellow metal to benefit from safe-haven buying, which may help silver.