Gold prices in the Mumbai bullion market on March 26 fell by Rs 141 to Rs 43,283 per 10 gram.
The rate of 10 gram 22-carat gold in Mumbai was Rs 39,647 plus 3 percent GST, while 24-carat 10 gram was Rs 43,283 plus GST. The 18-carat gold quoted at Rs 32,462 plus GST in the retail market.
The major gold trading centres are shut due to lockdown announced by state governments to prevent the spread of coronavirus disease.
"Gold prices retreated from a two-week high hit in the earlier sessions as a flight to cash offset optimism around the US government agreeing on a massive stimulus package to ease the economic burden of the coronavirus pandemic," said Navneet Damani, Vice President, Motilal Oswal.
Metal prices witnessed a positive move after the stimulus announcement although but could not sustain the momentum. Market participants will keep an eye on the weekly jobs data and Q4 GDP numbers of US.
The broader trend on Comex could be $1,580-1,635 and on the domestic front, prices could hover in the range of Rs 41,400-43,000, said Damani.
The gold/silver ratio currently stands at 106.05 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices declined Rs 90 to Rs 40,810 per kg from its closing on March 25.
In the futures market, the gold rate touched an intraday high of Rs 43,000 and an intraday low of Rs 41,430 on MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 44,961.
Gold futures for delivery in April gained Rs 708, or 1.68 percent on the MCX trading at Rs 42,925 per 10 gram in evening trade in a business turnover of 2,507 lots. Gold contracts for June delivery rose Rs 224, or 0.52 percent, at Rs 43,060 per 10 gram in a business turnover of 15,809 lots. The far month August contract was marginal down Rs 4, or 0.01 percent at Rs 42,989 in a business turnover of 426 lots.
The value of the April contract traded so far is Rs 1,807.18 crore and June contract saw the value of Rs 1,146.68 crore.
Similarly, Gold Mini contract for April was higher by Rs 81, or 0.19 percent at Rs 42,794 in a business turnover of 3,591 lots.
MCX Gold price is trading under ascending broadening wedge pattern, price remains to trade higher. Sustaining above Rs 42,200 next leg of rally would push price higher towards Rs 42,400-42,500 levels, according to Axis Securities.
Source: Axis Securities
The precious metal may test near Rs 43,000 in the next 2-3 trading sessions. On the hourly chart, the price is finding support near 60 EMA at every small correction.
The broking firm advised its clients to buy April Gold at Rs 42,200 with a stop loss at Rs 42,050 and a target of Rs 42,400.
MCX Gold has intraday support at Rs 41,900-41,645 whereas resistance is placed at Rs 42,710-42,970 levels, according to Motilal Oswal.
The brokerage firm said spot gold has support at $1,592-1575 whereas resistance is at $1,635-1,652.
At 13:02 pm (GMT), spot gold was up $9.56 at $1,626.74 an ounce in London trading.