Jerome Powell, the Fed chairman, bailed out gold as he announced that interest rates would be left untouched. This triggered a small rally as the yellow metal fought its way well below the $1,570 per ounce levels in London. In fact, gold slumped to around $1,565 per ounce (intra-day) and opened in London at $1,571.2 per ounce (am fix). Powell’s rescue operation saw gold close in London at $1,573 per ounce (pm fix). The yellow metal closed in New York in the $1,576-77 per ounce region. With over 6000 cases and more than 132 deaths, the Coronavirus scuttled a rally on the Dow and left it almost flat with a modest gain and the USD too barely managing to hold out. In early Asian trading, gold was seen around the $1,578 per ounce region.
In the domestic market, gold opened sharply lower by Rs.344 at Rs.40,312 per 10 gms in Mumbai. It recovered modestly during the day to close with a net loss of Rs.192 at Rs.40,464 per 10 gms (IBJA closing rates). The rebound by over 100 points on the BSE and the slightly weaker rupee gave mixed signals to the yellow metal. However, the gold price rally in London and New York as well as early morning Asian trading should see gold open much higher. Silver too followed the same pattern, but it opened with a sharp decline of Rs.1,290 at Rs.45,405 per kg. The white metal ended at Rs.45,535 per kg, with a net loss of Rs.1,160.