Gold prices climbed Rs 97 to Rs 48,234 per 10 gram in the Mumbai bullion market on weakness in dollar and firm global cues. The precious metal edged higher on spike in coronavirus infections in the US and other parts of the world supported by safe haven demand.
The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,176, Rs 44,182 and Rs 48,234 plus 3 percent GST.
Ravindra Rao, VP- Head Commodity Research, Kotak Securities, said economic data from major economies points towards nascent recovery post the virus slump. "US-China tensions rose after the US Senate passed legislation on June 25 that would sanction people or companies it deems in support of China's attempt to restrict Hong Kong's autonomy. Market players are becoming increasingly nervous that increased tensions could hamper the fragile trade deal signed in January, which is again supportive for gold."
Navneet Damani, Vice President, Motilal Oswal, said the broader trend on Comex could be in the range of $1,745-1,785 per ounce and on the domestic front prices could hover in the range of Rs 47,700-48,150 per 10 gram.
The gold/silver ratio currently stands at 99.89 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices jumped Rs 700 to Rs 48,234 per kg from its closing on June 25.
In the futures market, gold touched an intraday high of Rs 48,130 and an intraday low of Rs 47,802 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 48,539.
Gold futures for August delivery gained Rs 115, or 0.24 percent, at Rs 48,056 per 10 gram in evening trade on a business turnover of 14,091 lots. The same for October delivery rose Rs 116, or 0.24 percent, at Rs 48,222 on a business turnover of 5,816 lots.
The value of August and October contracts traded so far is Rs 2,536.34 crore and Rs 25.50 crore, respectively.
Similarly, Gold Mini contracts for July jumped Rs 68, or 0.14 percent, to Rs 48,020 on a business turnover of 5,610 lots.
Gold has strong resistance at Rs 48,180-48,330 whereas support is placed at Rs 47,800-47,640, according to Motilal Oswal. The broking firm sees support for spot gold at $1,750-1,780 levels.
At 12:06 (GMT), spot gold was down $1.32 at $1,762.36 an ounce in London trading.For all commodities related news, click here