Navneet Damani, Vice President, Motilal Oswal, sees domestic prices hovering in the range of Rs 46,600-47,125 per 10 gram
Gold prices gained Rs 212 to Rs 47,100 per 10 gram in Mumbai on the back of a weaker dollar-rupee, escalating tension between the US and China and worries over a global economic recovery.
An emergency rate cut of 40 basis points by the Reserve Bank of India (RBI) earlier on May 22 and various liquidity measures announced to combat against COVID-19 supported bullion prices.
In international news, China is planning to pass new national security law for two special administrative regions -- Hong Kong and Macau -- which has drawn criticism from the US and sparked of domestic protest in Hong Kong.
Market participants will also keep an eye on meeting minutes expected from the European Central Bank (ECB).
The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 35,325, Rs 43,144 and Rs 47,100 plus 3 percent GST.
In the futures market, gold touched an intraday high of Rs 47,130 and a low of Rs 46,464 on the Multi-Commodity Exchange (MCX). In the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 47,980.
Gold futures for June delivery increased Rs 597, or 1.29 percent, at Rs 46,985 per 10 gram in evening trade on a business turnover of 9,318 lots. The same for August delivery edged higher Rs 660, or 1.42 percent, at Rs 47,171 on a business turnover of 11,214 lots.
The value of the June and August contracts traded so far is Rs 2,237.93 crore and Rs 666.13 crore, respectively.
Similarly, Gold Mini contract for June gained Rs 553, or 1.19 percent at Rs 46,970 on a business turnover of 8,624 lots.
The gold/silver ratio currently stands at 100.11 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices fell Rs 255 to Rs 47,045 per kg from its closing on May 21.
Navneet Damani, Vice President, Motilal Oswal, sees domestic prices hovering in the range of Rs 46,600-47,125 per 10 gram.
At 12:56 pm (GMT), spot gold was up by $8.60 at $1,736.20 an ounce in London trading.
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