Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo

Gold price slips Rs 782 to Rs 42,808 per 10 grams, silver down Rs 980 per kg

The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 89.09 to 1.

February 25, 2020 / 07:25 PM IST

Gold prices declined Rs 782 to Rs 42,808 per 10 grams in Mumbai's bullion market on profit booking and rupee appreciation. The precious metal had closed at a lifetime high in on February 24 where it reached Rs 43,590 per 10 grams.

The rate of 10 grams, 22-carat gold in Mumbai was Rs 39,212 plus 3 percent GST, while that of 10 grams, 24-carat gold was Rs 42,808 plus GST. The price of 18-carat gold was quoted at Rs 32,106 plus GST in the retail market.

According to Navneet Damani, Vice President, Motilal Oswal, gold prices, after marking its all-time highs on domestic front, retraced a bit as investors chose to book profits, although growing fears over a spike in new coronavirus cases outside of china are still hovering the markets.

Damani added that the US Treasury Secretary commented that he does not expect the outbreak to have a material impact on the Phase 1 US-China trade deal, although that could change as more data becomes available in coming weeks. US Consumer confidence data, if reported below expectations, will further support the metal prices.

The broader trend on Comex could be $1,620-1,660, and on domestic front prices could hover in the range of Rs 42,200-Rs 42,950, said Damani.

Close

The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 89.09 to 1.

Silver prices fell Rs 980 to Rs 48,055 per kg from its closing on February 24.

In the futures market, gold rate touched an intraday high of Rs 43,176, and an intraday low of Rs 42,371 on the MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 43,788.

Gold futures for delivery in April slipped Rs 848, or 1.95 percent on the MCX trading at Rs 42,732 per 10 grams in the evening trade for a business turnover of 15,494 lots. Gold contracts for delivery in June eased Rs 849, or 1.94 percent, at Rs 42,945 per 10 grams in a business turnover of 8,259 lots.

The value of the April contracts traded so far is Rs 7,552.68 crore, and that of June contracts saw a value of Rs 296.36 crore.

Similarly, Gold Mini contracts for March was down Rs 846, or 1.95 percent at Rs 42,610 in a business turnover of 5,428 lots.

According to Axis Securities, Gold prices gave a gap down opening in today’s session, and its price corrected down till Rs 42,400 levels after it broke the strong support zone of Rs 42,800 levels. The brokerage firm expects volatility when US market opens in the evening.

Source: Axis Securities Source: Axis Securities

Axis Securities advised its clients to sell April Gold around the Rs 42,950 level with a stop loss at Rs 43,050, and a target of Rs 42,870-42,800.

MCX Gold has immediate support at Rs 42,725-42,590, whereas resistance is at Rs 43,010-43,180, according to Motilal Oswal. The broking firm said intraday pullback could be seen as long as price holds above support.

The brokerage firm said that spot gold immediate support at $1,645-1,642 with resistance at $1,663-1,670 area.

At 12:33 pm (GMT), spot gold declined $10.84 at $1,649.58 an ounce in London trading.
Sandeep Sinha
first published: Feb 25, 2020 06:33 pm

stay updated

Get Daily News on your Browser
Sections