Gold eases amid concerns over China virus outbreak

Gold eases amid concerns over China virus outbreak

The February gold futures in India eased on January 22, tracking some weakness in international prices as the dollar gained strength with investors assessing the risk of a global epidemic from a coronavirus outbreak in China.

The death toll from the Wuhan coronavirus in China rose to nine and the United States reported its first case, sending markets tumbling on fears of economic damage as tourists cancelled travel plans and airports stepped up screening, a Reuters report said.

Weighing on gold, the dollar firmed against a basket of currencies, making the yellow metal more expensive for holders of other currencies, it said.

On the MCX, gold contracts for February were trading lower by 136, or 0.34 percent, at Rs 39,775 per 10 gram at 0930 hours.

Experts say that investors should use dips to buy, as the yellow metal is likely to remain volatile but should trade in Rs 37,700-40,000 range.