Gold rate today: Bullion skids as Fed sees less risk to US growth

Gold futures skid in the domestic market on Monday as positive commentary from US Fed put pressure on the prices. However, some of the effects were offset by a fast-spreading coronavirus outbreak that is hitting the global economy.

The Federal Reserve said that the US economy slowed last year on weak global growth, but key risks have receded and the likelihood of recession has declined, although it recognised possible risk of an economic downturn due to the fallout from the coronavirus outbreak.

Gold futures were down 0.16 per cent to Rs 40,579 per 10 grams, while silver futures shed 0.11 per cent to Rs 46,055 per kg.


In the global market, gold prices edged up on rising concerns over the new coronavirus and its impact on global growth. Spot gold was up 0.1 per cent to $1,572.01 per ounce by 0100 GMT. US gold futures rose 0.3 per cent to $1,577.50.



Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust, rose 0.13 per cent to 916.08 tonnes on Friday.

Palladium advanced 0.2 per cent to $2,321.89 an ounce, silver rose 0.2 per cent to $17.71, and platinum edged higher by 0.2 per cent to $966.42.

Hedge funds and money managers cut their bullish positions in COMEX gold contracts in the week to February 4.