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Last Updated : Sep 30, 2020 09:06 PM IST | Source: Moneycontrol.com

Gold price back above Rs 50,000-mark ahead of first US Presidential debate, silver surges Rs 2,299/kg

The broader trend on COMEX could be in the range of $1865- 2000 and on domestic front prices could hover in the range of Rs 50,050-50,500, said Damani.


Gold prices rose Rs 690 to Rs 50,447 per 10 gram in the Mumbai retail market on rupee depreciation and positive global cues. The precious metal traded firm as the dollar retreated ahead of the first US presidential debate later in the day.

The rate of 10 gram 22-carat gold in Mumbai was Rs 46,209 plus 3 percent GST, while 24-carat 10 gram was Rs 50,447 plus GST. The 18-carat gold quoted at Rs 37,835 plus GST in the retail market.

Bullion prices also found some support after the latest developments in US stimulus measures. US House of Representatives Speaker Nancy Pelosi said the reduced $2.2 trillion price tag was a compromise but did not indicate when a vote would take place.

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Improved consumer demand in India is also evident from narrowing spread between domestic and international price.

Gold holding in SPDR ETF rose by 2 tonnes to 1268.88 tonnes.

Spot gold was trading up $1.56 at $1,882.96 an ounce at 1206 GMT in London trading.

MCX iCOMDEX Bullion Index jumped 102 points, or 0.67 percent, at 15,430.52 at 17:30. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Navneet Damani, Vice President, Motilal Oswal said, “Gold prices higher, erasing early losses as the dollar retreated from a two-month peak ahead of the US presidential debates scheduled later today and progress on the new coronavirus relief bill although a stock market rebound capped gains in bullion. President Donald Trump and former Vice President Joe Biden will square off in their first presidential debate later in the day, with five weeks to go until the November 3 general election, based on the comments from both this could bring in volatility in the market.”

Market participants will focus on the important consumer confidence data expected from the US which will throw further light on the consumers perspective on the economic activity; if reported less than expectations it could support bullion's on lower levels. The broader trend on COMEX could be in the range of $1865- 2000 and on domestic front prices could hover in the range of Rs 50,050-50,500.

“COMEX gold trades moderately higher near $1890/oz. Gold has recovered from last week’s sharp fall as the bulls managed to hold the key $1850/oz support. The recovery in gold price was triggered by a sharp correction in US dollar index. The price may extend the gains further till $1895-1900/oz provided the fall in US Dollar Index continues. Any recovery in US dollar might again pressurize the yellow metal”, said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

The gold/silver ratio currently stands at 83.56 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices climbed Rs 2,299 to Rs 60,370 per kg from its closing on September 28.

In the futures market, the gold rate touched an intraday high of Rs 50,439 and an intraday low of Rs 50,074 on the Multi-Commodity Exchange (MCX). For the December series, the yellow metal touched a low of Rs 48,384 and a high of Rs 56,379.

Gold futures for December delivery gained Rs 114, or 0.23 percent, at Rs 50,252 per 10 gram in evening trade on a business turnover of 15,211 lots. The same for October edged higher Rs 302, or 0.60 percent, at Rs 50,435 on a business turnover of 264 lots.

The value of the October and December contracts traded so far is Rs 228.33 crore and Rs 2,649.01 crore, respectively.

Similarly, Gold Mini contract for November soared Rs 157, or 0.31 percent at Rs 50,352 on a business turnover of 10,788 lots.

Trading strategy

Sriram Iyer, Senior Research Analyst at Reliance Securities

On the charts, LBMA Gold Spot is trading on a positive note where it has bounced back from 100-Daily Moving Average which is placed at $1848 levels where $1882-$1902 could act as resistance and support is at $1872-$1860 levels.

On the charts, MCX Gold October contract is approaching near 65-Daily Moving Average which is placed at Rs 50,570 levels which could halt further upside movement. Support is placed at Rs 50,150-49,900 levels.

Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking

Falling Dollar after a solid rally in the earlier week might support Gold prices in today’s session. On the MCX, gold prices are expected to trade higher in today’s session.

As for today, traders can go for buy in gold at Rs 50,000 levels with the stop loss of Rs 49,600 levels for the target of Rs 50,700 levels. They can also go for buy in silver at Rs 60,500 levels, with the stop loss of Rs 59,500 levels and for the target of Rs 62,000 levels.

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First Published on Sep 29, 2020 06:51 pm
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