Gold prices jumped Rs 325 to Rs 38,796 per 10 gram in the Mumbai bullion market after the US Federal Reserve's third rate cut this year.
The rate of 10 grams 22-carat gold in Mumbai was at Rs 38,641 plus 3 percent GST, while 24-carat 10 gram was Rs 38,796 plus GST. The price of 18-carat quoted at Rs 29,097 plus GST in the retail market. Silver price gained Rs 510 to Rs 46,775 per kg from its closing on October 30.
The gold/silver ratio that measures the amount of silver required to buy one ounce of gold currently stands at 82.94 to 1.
In the futures market, gold rate touched an intraday high of Rs 38,378 and an intraday low of Rs 38,037 on MCX. For the December series, the yellow metal touched a low of Rs 32,289 and a high of Rs 40,771.
Gold futures for delivery in December gained Rs 251, or 0.66 percent on the MCX trading at Rs 38,339 per 10 gram in evening trade in a business turnover of 17,057 lots. Gold contracts for February delivery was up by Rs 236, or 0.62 percent, at Rs 38,521 per 10 gram in a business turnover of 5,029 lots.
The value of the December contract traded so far is Rs 2,896.75 crore and the February contract saw a value of Rs 153.83 crore.
Similarly, Gold Mini contract for December gained Rs 243, or 0.64 percent at Rs 38,392 in a business turnover of 8,998 lots.
MCX Gold is expected to trade positively with good support at Rs 38,100 levels and intermediate support at Rs 38,250 level, according to Motilal Oswal. The brokerage firm advised its client to buy targeting higher resistance at Rs 38,500-38,650 zone.
The brokerage firm said spot gold is expected to trade in the range of $1,502-$1,527 range with a positive bias.At 12:37 pm (GMT) spot gold gained by $13.25 at $1,510.95 an ounce in London trading.