Gold Prices Fall as Investors Stockpile Cash Amid National Coronavirus Lockdowns

Gold Prices Fall as Investors Stockpile Cash Amid National Coronavirus Lockdowns

Gold Prices Fall as Investors Stockpile Cash Amid National Coronavirus Lockdowns

At 1:20 pm, gold futures for April delivery fell 0.94 percent to Rs 39,980 per 10 grams as against the previous close of Rs 40,358 and opening price of Rs 40,721 on the MCX.

Among other precious metals, palladium rose 0.4% to $1,648.14 per ounce, platinum jumped 1.9% to $622.56 and silver edged higher by 0.3% to $12.61. Mirroring losses in equities, the Indian rupee slipped to a new all-time low of 76.14 against the dollar, surpassing the 76-mark for the first time ever.

On the Comex market in NY, gold for delivery in April, the most active contract, rocketed by as much as $131 an ounce or 8.4% compared to Monday's close, to trade at $1,698 an ounce by midday before paring some of those gains in early afternoon trade.

Spot gold climbed 1.7 per cent to $1,578.83 per ounce by 0116 GMT.

Holdings of SPDR Gold Trust, the world's largest gold-backed change-traded fund, rose 1.8% to 923.99 tonnes on Monday.

- Palladium surged 7.3% to $1,844.50 per ounce, while platinum rose 4.5% to $671.11 and silver jumped 5.4% to $13.97 per ounce.

United Kingdom scientists say social distancing needs to last 'most of a year'
This won't all be in one go, instead the heavy restrictions will come and go in order to manage the number of cases. The best estimate of the proportion of people who die after being infected is in the range of 0.5% to 1%.

The dollar held near a three-year high against major currencies as fresh declines in global stocks and worries about tightening liquidity amid the worsening crisis accelerated the flight to cash.

Many central banks have announced various measures to mitigate the damage of the coronavirus outbreak, with Australia's central bank proposing to buy $2.35 billion in government bonds, while Germany agreed for a package worth up to $808 billion.

- A far-reaching virus economic stimulus package remained stalled in the U.S. Senate on Monday as Democrats said it contained too little money for states and hospitals and not enough restrictions on a fund to help big businesses.

Oil rallied for a second day after the Federal Reserve unveiled a sweeping set of measures to support the world's largest economy.

Meanwhile spot gold markets in many parts of the country remains shut due to lockdown in major states to prevent spread of coronavirus, according to HDFC Securities.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.