Bullion counters were trading around the flatline on Wednesday on domestic bourses as number of new
coronavirus cases fell, but uncertainty over the economic impact of the outbreak kept traders in a limbo.
While the death toll exceeded 1,000, China's foremost medical adviser on the epidemic said infections may be over by April, with the number of new cases already declining in some places.
Gold futures were down 0.03 per cent to Rs 40,396 per 10 grams, while
silver futures were unchanged at Rs 45,663 per kg.
Brokerage SMC Global said bullion counters can see some selling pressure at higher levels. Gold can dip lower towards Rs 40,200 while facing resistance near Rs 40,600, while silver can dip towards Rs 45,500 while facing resistance near Rs 46,000, it added.
Globally, gold was little changed. Spot gold was flat at $1,567.82 per ounce by 0348 GMT. US gold futures edged 0.1 per cent higher to $1,571.20.
In the United States, Federal Reserve Chair Jerome Powell told Congress on Tuesday the US economy is in a good place, but cited the potential threat from the epidemic and concerns about the economy's long-term health.
Gold, which is often used as an insurance against economic risks, tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.
Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust rose 0.67 per cent to 922.23 tonnes on Tuesday, its highest in over three months.
Palladium rose 0.3 per cent to $2,347.52 an ounce, silver shed 0.1 per cent to $17.61, and platinum was unchanged at $968.84.