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Gold rate today: bullion surges after Fed rings alarm bells on coronavirus

Bullion counters jumped in Thursday’s trade as the threat of coronavirus continued unabated which triggered investor’s flight to safety.

The number of confirmed deaths from the coronavirus in the country climbed to 170 as of late Wednesday, while the number of infected patients rose to 7,711.

Gold prices also got a boost after the US Federal Reserve said the new coronavirus outbreak could hurt China's economy in the short term.

Gold futures were up 0.52 per cent to Rs 40,788 per 10 gram, while silver futures gained 0.85 per cent to Rs 45,940 per kg.

Brokerage SMC Global expects bullion counters to extend yesterday's gains. Gold can move higher towards Rs 40,700 while taking support near Rs 40,250, while silver can test Rs 46,300 while taking support near Rs 45,700, it added.

Globally, spot gold rose 0.1 per cent to $1,578.05 per ounce by 0058 GMT, having gained 0.7 per cent in the previous session. US gold futures climbed 0.5 per cent to $1,577.70.

As per a Reuters technical analyst, spot gold may end its rise around a resistance at $1,582 per ounce, and then retrace towards a support at $1,573.

The resistance is identified as the 61.8 per cent retracement of the uptrend from $1,535.63 to $1,610.93. Strengthening the resistance is a similar one established by a falling trendline.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust rose 0.45 per cent to 903.50 tonnes on Wednesday.

Meanwhile, palladium rose 0.7 per cent to $2,305.21 an ounce, silver gained 0.3 per cent to $17.58, while platinum climbed 0.2 per cent to $975.70.

Courtesy - ETMarkets.com

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