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Last Updated : Feb 10, 2020 07:00 PM IST | Source: Moneycontrol.com

Gold gains Rs 72 to Rs 40,738 per 10 grams on safe haven demand, silver slips marginally

The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 88.12 to 1.

Gold prices gained for the fourth successive day by Rs 72 to Rs 40,738 per 10 grams in Mumbai's bullion market on safe haven buying over coronavirus concerns as the death toll in China crossed over 900.

The rate of 10 grams, 22-carat gold in Mumbai was Rs 37,316 plus 3 percent GST, while that of 10 grams,24-carat gold was Rs 40,738 plus GST. The price of 18-carat gold quoted at Rs 30,554 plus GST in the retail market.

According to Navneet Damani, Vice President, Motilal Oswal, gold prices showed some sign of recovery on rising concerns over the new coronavirus, and its impact on global growth outweighed encouraging US economic data, which drove the metal prices higher. Until and unless no official sources are confirming any positive news on an antidote to the coronavirus, metal prices will keep getting support on the lower levels.


Source: Motilal Oswal

On data front, US non-farm payrolls reported positive. On other hand the unemployment numbers recorded higher than expectations, and thus hence supported the metal's prices.

A broader trend on the Comex could be $1,555-1,590, and on the domestic front, prices could hover in the range of Rs 40,250-Rs 40,800, said Damani.

The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 88.12 to 1.

Silver prices dipped Rs 5 to Rs 46,225 per kg from its closing on February 7.

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In the futures market, gold rate touched an intraday high of Rs 40,710 and an intraday low of Rs 40,565 on MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 41,567.

Gold futures for delivery in April slipped Rs 79, or 0.19 percent on the MCX trading at Rs 40,565 per 10 grams in evening trade in a business turnover of 17,075 lots. Gold contracts for June delivery eased Rs 23, or 0.06 percent, at Rs 40,767 per 10 grams in a business turnover of 5,717 lots.

The value of the April contracts that were traded so far is Rs 2,124.32 crore, and those of June contracts saw a value of Rs 52.99 crore.

Similarly, the price of Gold Mini contracts for March was down Rs 55, or 0.14 percent at Rs 40,508 in a business turnover of 8,562 lots.

Axis Securities advised its clients to sell gold contracts for April at Rs 40,670 with a stop loss at Rs 40,750, and a target of Rs 40,570.

MCX Gold has intraday support at Rs 40,480-40,300, whereas resistance is at Rs 40,760-40,880, according to Motilal Oswal.

The brokerage firm said spot gold has immedate support at $1,567-1,560 whereas resistance is at $1,580-1,587.

At 12:28 pm (GMT), spot gold was up $2.15 at $1,572.05 an ounce in London trading.
First Published on Feb 10, 2020 07:00 pm