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Last Updated : Jun 05, 2020 06:06 PM IST | Source: Moneycontrol.com

Gold falls Rs 71 to Rs 46,696, down 0.49% for the week

The broader trend on COMEX could be in the $1,695-1,725 range and on the domestic front, gold can hover around the Rs 46,100-46,850 bracket, Navneet Damani of Motilal Oswal said.

Gold prices slipped Rs 71 to Rs 46,696 per 10 gram in the Mumbai bullion market on June 5 tracking weak global cues and ahead of US non-farm payrolls data. The metal was down Rs 233, or 0.49 percent, for the week.

Investment in gold ETF jumped by 154 tonnes in May to a new record high of 3,510 tonnes, according to the World Gold Council. The year-to-date inflow in ETF now stands at 623 tonnes, surpassing the previous highest inflow of 591 tonnes in 2009.

The rate of 10 gram 22-carat gold in Mumbai was Rs 42,774 plus 3 percent GST, while 24-carat 10 gram was Rs 46,696 plus GST. The 18-carat gold quoted at Rs 35,134 plus GST in the retail market.

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Ravindra Rao, VP-Head Commodity Research at Kotak Securities said gold prices were trading 0.8 percent lower near $1,714/oz as European indices traded with a positive bias tracking cues from Asian indices while Dow futures were up nearly 300 points.

Market sentiment seems to have been buoyed amid recent flood of government stimulus. In Euro Zone, ECB on June 4 expanded its stimulus more than expected to revive growth in the region.

Global risk appetite also seems to be supported by growing optimism over economic recovery as many nations lift lockdowns following a decline in the pace of infections.

The US employment data expected later in the day will be watched closely. If it is worse than expected,  it can reverse gold’s current downside.

The broader trend on COMEX could be in the range of $1,695-1,725 and on the domestic front, prices could hover in the Rs 46,100-46,850 bracket, Navneet Damani, Vice President, Motilal Oswal, said.

The gold/silver ratio stands at 97.69 to 1, which means the amount of silver required to buy an ounce of gold.

Silver prices fell Rs 130 to Rs 47,800 per kg from its closing on June 4.

In the futures market, gold touched an intraday high of Rs 46,557 and an intraday low of Rs 46,260 on the Multi-Commodity Exchange (MCX).

For the August series, the yellow metal touched a low of Rs 39,200 and a high of Rs 48,190.

Gold futures for August delivery eased Rs 406, or 0.87 percent, at Rs 46,290 per 10 gram in evening trade on a business turnover of 14,288 lots.

The same for October delivery slipped by Rs 369, or 0.79 percent, to Rs 46,445 on a business turnover of 5,442 lots.

The value of the August and October contracts traded so far is Rs 2,539.28 crore and Rs 66.52 crore, respectively.

Similarly, Gold Mini contract for July was down Rs 398, or 0.93 percent, at Rs 46,216 on a business turnover of 9,529 lots.

MCX Gold is trading in a range for the session, with support placed at Rs 46,030 whereas resistance is at Rs 46,660, according to Motilal Oswal.

The broking firm said spot gold had support at $1,695-1,690 and resistance at the $1,715-1,725 level.

At 1216 GMT, spot gold was down by $12.79 at $1,701.36 an ounce in London trading.

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First Published on Jun 5, 2020 06:06 pm
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