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Last Updated : Jan 16, 2020 08:47 PM IST | Source: Moneycontrol.com

Gold prices stay firm at Rs 39,900; Silver gains Rs 310 a kg

The 22-carat gold in Mumbai was quoting Rs 36,548 per 10 gram plus 3 percent GST, while 24-carat 10 gram was at Rs 39,900 plus GST. The 18-carat gold was at Rs 29,925 plus GST in the retail market.

Representative Image
Representative Image

Gold prices stayed firm at Rs 39,900 per 10 gram in the Mumbai bullion market finding support as investors remained wary about unresolved tariff issues after the US and China signed ‘Phase One’ agreement. Weakness in the rupee also helped.

The 22-carat gold in Mumbai was quoting Rs 36,548 per 10 gram plus 3 percent GST, while 24-carat 10 gram was at Rs 39,900 plus GST. The 18-carat gold was at Rs 29,925 plus GST in the retail market.

According to Navneet Damani, Vice President, Motilal Oswal, gold prices were steady as investors remained concerned about existing tariffs and unresolved issues after the US and China signed the interim trade deal.

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Even though the overhanging mood on the market remains positive, few pain points still remain which continues to give support to the metal prices. China has agreed to buy more goods and services from the US according to market consideration.

On the other hand, the US has agreed to remove the tariffs levied on China only after the phase-two deal as the US can use it as a negotiating card.

The broader trend on Comex could be $1,540-1,570 and on the domestic front, prices could hover in the range of Rs 39,450- 39,900, added Damani.

The gold/silver ratio that refers to the amount of silver required to buy one ounce of gold was at 86.23 to 1.

Silver prices gained Rs 310 to Rs 46,270 per kg from its closing on January 15.

In the futures market, gold rate touched an intraday high of Rs 39,775 and an intraday low of Rs 39,604 on MCX. For the February series, the yellow metal touched a low of Rs 36,098 and a high of Rs 41,293.

Gold futures for delivery in February rose Rs 114, or 0.29 percent on the MCX trading at Rs 39,725 per 10 gram in evening trade in a business turnover of 12,150 lots. Gold contracts for April delivery gained Rs 127, or 0.32 percent, at Rs 39,871 per 10 gram in a business turnover of 11,286 lots. The far month June contract was trading up by Rs 140, or 0.35 percent at Rs 40,030 per 10 gram with a business volume of 351 lots.

The value of the February contract traded so far is Rs 2,073.30 crore and April contract saw the value of Rs 215.40 crore.

Similarly, Gold Mini contract for February jumped by Rs 113, or 0.29 percent at Rs 39,711 in a business turnover of 8,880 lots.

Gold price is trading under ascending triangle pattern and are expected to trade positive. Sustaining above Rs 39,670 would push price higher towards Rs 39,850-40,000, according to Axis Securities.

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On hourly chart, price have started trading above 9, 21 and 60 EMA which is a bullish sign and gold has a trading range of Rs 40,500-39,000 levels in short to medium term.

The broking firm advised its clients to buy February gold at Rs 39,670 with stoploss at Rs 39,550 and target of Rs 39,850.

MCX Gold has support at Rs 39,600-39,450 whereas resistance is placed at Rs 39,900-40,050. Bias remains sideways to positive for the day, and price sustainability above resistance level of Rs 39,900 will give further momentum towards next resistance at Rs 40,050, according to Motilal Oswal.

The brokerage firm said spot gold has intraday support at $1,540 whereas resistance is at $1,570.

At 12:21 pm (GMT), spot gold was flat at $1,555.90 an ounce in London trading.

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First Published on Jan 16, 2020 06:16 pm
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