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Last Updated : Feb 06, 2020 06:35 PM IST | Source: Moneycontrol.com

Gold gains Rs 288 to Rs 40,498, silver up 1.42%

Silver prices rose Rs 645 to Rs 46,155 per kg from its closing on February 5.


Gold prices gained Rs 288 to Rs 40,498 per 10 grams in Mumbai's bullion market on safe haven demand as the death toll from the outbreak of the coronavirus in China crossed over 500.

The rate of 10 grams, 22-carat gold in Mumbai was Rs 37,096 plus 3 percent GST, while that of 10 grams, 24-carat gold was Rs 40,498 plus GST. The price of 18-carat gold quoted at Rs 30,374 plus GST in the retail market.

According to Navneet Damani, Vice President, Motilal Oswal, gold prices continue to consolidate after it witnessed a sharp fall in the past couple of sessions amidst the strong US economic data. But the weakness seemed to be capped as fears of the rapidly spreading coronavirus, and its impact on the global economy is rising.

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On other hand, strong data from US is weighing on the metal prices, after positive PMI numbers, private payrolls number has also come in strong, increasing the bets for nonfarm payrolls data that is scheduled tomorrow.

The broader trend on the Comex could be $1,545-1,575, and on the domestic front, prices could hover in the range of Rs 40,120-40,580, said Damani.

Gold found support as risk sentiment remains in place as the death toll from the virus in mainland China jumped to 563 and The World Health Organization (WHO) has played down reports of “breakthrough” in drugs being discovered to treat people infected with the new coronavirus, said Abhishek Bansal, CMD, Abans Group of Companies.

The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 87.74 to 1.

Silver prices rose Rs 645 to Rs 46,155 per kg from its closing on February 5.

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In the futures market, gold rates touched an intraday high of Rs 40,397, and an intraday low of Rs 40,030 on MCX. For the February series, the yellow metal touched a low of Rs 37,530 and a high of Rs 41,567.

Gold futures for delivery in April gained Rs 125, or 0.31 percent on the MCX trading at Rs 40,325 per 10 grams in an evening trade in a business turnover of 17,159 lots. Gold contracts for delivery in June rose Rs 153, or 0.38 percent, at Rs 40,491 per 10 grams in a business turnover of 5,354 lots.

The value of the April contracts that have been traded so far is Rs 2,822.63 crore, and those of June contracts saw a value of Rs 125.91 crore.

Similarly, Gold Mini contracts for March gained Rs 113, or 0.28 percent at Rs 40,259 in a business turnover of 8,419 lots.

According to Axis Securities, gold prices have given a positive break out from a falling trend line channel, and the price is expected to trade positively. Sustaining above Rs 40,300 for the next leg of the rally would push price higher towards Rs 40,500-40,600 levels.

Source: Axis Securities

On the hourly chart, the price is trading above 9 & 21 EMA which is a bullish sign.

The relative strength index (RSI) is trading at 64, indicating high momentum in price.

The broking firm advised its client to buy April gold at Rs 40,300-40,280 with a stoploss at Rs 40,150 and a target of Rs 40,500-40,600.

MCX Gold has intraday support at Rs 40,100-40,025 whereas resistance is at Rs 40,435-40,550, according to Motilal Oswal. The broking firm advised its clients to buy on dip for the session.

The brokerage firm said spot gold has immediate support at $1,558-1,553 whereas resistance is at $1,577-1,582.

At 12:01 pm (GMT), spot gold was up $7.84 at $1,564.24 an ounce in London trading.

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First Published on Feb 6, 2020 05:50 pm
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