In the futures market, gold rate touched an intraday high of Rs 38,237 and an intraday low of Rs 38,008 on MCX.
Gold price on December 5 slipped Rs 157 to Rs 38,181 per 10 gram in Mumbai bullion market on strong rupee and hopes of a revival in US-China trade talks.
The rate of 10 grams 22-carat gold in Mumbai was Rs 34,974 plus 3 percent GST, while 24-carat 10 gram was Rs 38,181 plus GST. The 18-carat gold quoted at Rs 28,636 plus GST in the retail market.
Silver prices also dipped Rs 720 to 43,980 per kg from its closing on December 4.
The gold/silver ratio currently stands at 86.81 to 1, which means the amount of silver required to buy one ounce of gold. The ratio has broken the key resistance of 86.75 and price sustained break above the same will extend the rally towards 89.75-91 area, according to Jigar Dharamshi, Technical Analyst at Motilal Oswal.
Strong support is placed at 85.10-84.50 zone and bias for the ratio looks positive above the same, Dharamshi added.
The precious metal is trading near the trend line support level, price is expected to trade lower. Any break down below Rs 38,000 would drag price lower towards Rs 37,850/37,750 levels. Alternatively, Rs 38,250 remains strong resistance level, according to Axis Securities.On hourly chart, price is trading below 9, 21 and 60 day EMA which is a bearish sign for prices. RSI is trading at 33 it indicates low momentum in prices.
In the futures market, gold rate touched an intraday high of Rs 38,237 and an intraday low of Rs 38,008 on MCX. For the February series, the yellow metal touched a low of Rs 36,098 and a high of Rs 40,806.
Gold futures for delivery in February slipped Rs 61, or 0.16 percent on the MCX trading at Rs 38,033 per 10 gram in evening trade in a business turnover of 17,206 lots. Gold contracts for April delivery were down by Rs 58, or 0.15 percent, at Rs 38,070 per 10 gram in a business turnover of 1,907 lots.
The value of the February contract traded so far is Rs 2,473.45 crore and April contract saw the value of Rs 40.45 crore.
Similarly, Gold Mini contract for January was down Rs 63, or 0.17 percent at Rs 38,075 in a business turnover of 8,730 lots.
MCX Gold has support at Rs 38,000-37,825 whereas resistance is at Rs 38,240-38,380. Sideways movement is expected for the day, according to Motilal Oswal. Price sustainability above immediate resistance level of Rs 38,240 will give further momentum towards Rs 38,380 level.
The brokerage firm said spot gold has key support at $1,460 whereas resistance remains at $1,490.At 13:37 pm (GMT) spot gold was marginally up $0.95 at $1,480.75 an ounce in London trading.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.