Gold prices fell today in Indian markets after sharp jump in the previous session. On MCX, April gold futures fell 0.11% to ₹41,375 per 10 gram. In the previous session, gold had jumped about ₹650 per 10 gram or 1.6%, tracking a surge in the yellow metal’s prices in global markets. Bucking the trend, silver futures of MCX however today rose 0.16% to 47,340 per kg. In the previous session, silver prices had surged ₹1,087 per kg.

Fears of an economic fallout from the coronavirus outbreak is supporting the demand for gold, says SMC Global in a note. Gold can move towards ₹41,600 while taking support near ₹41,200 while silver can move towards ₹47,600 while taking support near ₹47,000,” it added.

In global markets, spot gold prices were steady at at $1,601.77 per ounce after seeing a big surge in the previous session. Worries about the fallout of the coronavirus on global growth supported the yellow metal on the downside even though there was a drop in new virus cases. Indian as well as other Asian equities were cautiously higher today.

China reported 1,749 new confirmed cases of coronavirus infections, the lowest since January 29 even though the death toll in the country topped more than 2,000.

Gold investors will watch out for the minutes of the Federal Reserve’s January 28-29 policy meeting, which is due later today. The Fed had kept interest rates unchanged in its previous policy meeting.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and also weigh on the US currency. Investment demand for gold has surged as coroanavirus fears led investors to opt for the safe-haven.

The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.6% to 929.84 tonnes on Tuesday, their highest over three years.

Among other precious metals, palladium today jumped 1.6% to $2,677.09 an ounce while silver was up 0.4% to $18.24.