Gold Price Today: Gold April futures trading around Rs 40,503 today; expert says buy yellow metal

Gold Price Today February 7, 2020: Indian Gold April futures were trading at Rs 40503 per 10 gm up 0.38% on Friday at around 3:12 pm. The yellow metal today opened at 40393 levels. It achieved an intraday high of Rs 40515 while an intraday low of Rs 40302.

Market expert Anuj Gupta of Angel Broking said that there has been a trend where the gold prices have steadied in the  3-4 days. Gupta said that this is the right time to invest in gold as the global market uncertainties and Coronavirus outbreak has impacted the equity market quite negatively. Gupta said that he sees the situation to likely continue for some more time.

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Gupta said that the Gold prices could reach a high between 40800 and 41000. He puts the stop loss at 39900.

Several media reports suggest Chinese policymakers readying measures to support their economy jolted by the coronavirus outbreak. The epidemic is likely to have an adverse global impact on the markets for a longer duration, Gupta said. He advises that gold is a good buy at this time and could be used to hedge losses. He also sees inflationary pressure to persist in the country further impacting the equity markets.

The country's December inflation was over high in the last eight months and is likely to remain that way. Even the RBI yesterday raised inflation forecast for Q4FY20 to 6.5 percent in its Monetary Policy announcement. For the first half of FY21, the MPC increased its inflation outlook by 0.30 percent to 5.4-5 percent.

Meanwhile, the Gold prices have also steadied in the international markets on Friday.

Gold prices were steady on Friday after two days of gains as share markets lost ground, with the coronavirus that originated in Wuhan, China, showing no signs of slowing down, Reuters reported.

The metal, however, was still on track for its biggest weekly decline in three months as strong U.S. economic data, including a drop in unemployment benefits, continued to underpin the greenback. Investors now await the non-farm payrolls data, a key barometer of the U.S. economy, due later in the day, the Reuters report said.