“Bulls need to keep gold prices above $1,982 levels to take it higher,” Ravindra Rao, VP-Head Commodity Research at Kotak Securities, said
Gold prices climbed to a fresh high of Rs 53,743 per 10 gram in the Mumbai bullion market on dollar weakness and concerns over slower economic growth caused by the coronavirus pandemic.
The US Dollar Index fell 0.19 percent to 92.85. The index is trading near May 2018 lows amid increasing concerns about the health of the US economy on rising coronavirus cases, uneven economic recovery and political wrangling over additional stimulus measures.
A spike in COVID-19 cases in the United States has dented hopes for a quick economic recovery, driving inflows into safe-haven assets such as gold, which has risen more than 28 percent so far this year. Underscoring impact from the virus, US GDP collapsed at a 32.9 percent annualised rate during the second quarter, the deepest decline in output since the government started keeping records in 1947, the US Commerce Department said.
US Federal Reserve in a policy update offered no real clues about its next moves beyond a reiteration of its easy monetary stance. Comments from the Fed governor, later on, increased the bets for the safe haven assets.
The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 40,307, Rs 49,229 and Rs 53,743, respectively, plus 3 percent GST.
The yellow metal has gained Rs 2,619, or 5.12 percent, in the domestic market this week.
“Gold prices, after a seesaw movement in the previous session, continued to trade higher and were on track for their best month in four years on July 31 as a weaker dollar and worries over the global economic fallout from the mounting COVID-19 cases drove investors towards the safe-haven metal,” Navneet Damani, Vice President, Motilal Oswal, said.
The broader trend on COMEX could be in the range of $1,920-1,995 per troy ounce, Damani said. "On the domestic front, prices could hover in the range of Rs 52,900-53,950/10 gram."
“Bulls need to keep gold prices above $1,982 levels to take it higher,” Ravindra Rao, VP-Head Commodity Research at Kotak Securities, said.
The gold-to-silver ratio currently stands at 84:1, which means the amount of silver required to buy one ounce of gold.
Silver prices jumped Rs 2,215 to Rs 63,975 per kg from its closing on July 30.
In the futures market, gold touched an intraday high of Rs 53,844 and a low of Rs 53,503 on the Multi-Commodity Exchange (MCX). For the August series, the yellow metal has touched a low of Rs 39,200 and a high of Rs 53,844.
Gold futures for August delivery gained Rs 452, or 0.85 percent, at Rs 53,590 per 10 gram in evening trade on a business turnover of 621 lots. The same for October delivery jumped Rs 637, or 1.21 percent, at Rs 53,417 on a business turnover of 16,746 lots.
The value of the August and October contracts traded so far is Rs 231.12 crore and Rs 3,937.87 crore, respectively.
Similarly, Gold Mini contract for September rose Rs 645, or 1.22 percent, at Rs 53,470 on a business turnover of 11,544 lots.
At 12:07 (GMT), spot gold was up $19.17 at $1,975.81 an ounce in London trading.For all commodities related news, click here