Gold Rate Today: Gold, silver slip as China injects liquidity in virus-hit market

Bullion counters eased on Monday in the domestic market as China's central bank injected liquidity into its markets to help support firms hit by a coronavirus epidemic.

China's central bank said it will inject 1.2 trillion yuan ($174 billion) worth of liquidity into the markets via reverse repo operations on Monday.



Gold futures fell 0.44 per cent to Rs 41,022 per 10 gram and silver futures shed 1.16 per cent to Rs 46,573 per kg.

Brokerage SMC Global said bullion counters can witness some profit booking at higher levels. Gold (Apr) can dip lower towards Rs 40,800 while facing resistance near Rs 41,300. Silver (Mar) can test Rs 46,100 while facing resistance near Rs 46,900, it added.

Gold eased on Monday after scaling a near four-week peak, as China's central bank injected liquidity into its markets to help support firms hit by a coronavirus epidemic, with a stronger dollar holding back bullion as well.

Spot gold fell 0.4 per cent to $1,582.82 per ounce, having gained more than 1 per cent in the previous session. US gold futures edged higher by 0.1 per cent to $1,588.80.

Meanwhile, total gold imports by top consumer China more than trebled in December 2019 from the previous month, but were down 28 per cent on a yearly basis, data from the country's customs website showed on Friday.

Physical gold markets in major Asian hubs saw activity dwindle last week as the coronavirus epidemic took a toll on demand, especially with China out of action.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust fell 0.03 per cent to 903.21 tonnes on Friday.

Palladium rose 0.4 per cent to $2,286.71 an ounce, silver fell 0.7 per cent to $17.91, and platinum rose 0.7 per cent to $963.27.