Gold prices are likely to remain under pressure in the short term with a possible decline of 2-3 per cent as investors look to cover margin calls in other asset classes, such as equities, metals, energy, and currencies, amid a global market sell-off triggered by the spread of coronavirus.
Most global stock markets suffered their worst week since the financial crisis of 2008. The Sensex ended the week with a 7 per cent loss, with about Rs 12 trillion of investor wealth being wiped off. On Friday, the Sensex plunged 1,448 points, or 3.6 per cent, prompting gold and silver investors to cash out to cover the losses in other assets classes.
Navneet Damani, vice-president, Motilal Oswal Financial Services, forecasts gold prices to decline by about Rs 1,000 per 10 gm to Rs 40,400 next week.
Gold futures for