Gold prices fell for the fourth straight day. The yellow metal was down by Rs 48 at Rs 37,906 per 10 gram in Mumbai bullion market following appreciation in the rupee and US President Donald Trump's comments that an interim trade deal with China is close.
The rate of 10 grams 22-carat gold in Mumbai was Rs 34,722 plus 3 percent GST, while 24-carat 10 gram was Rs 37,906 plus GST. The 18-carat gold quoted at Rs 28,430 plus GST in the retail market. Silver prices gained Rs 175 to 44,425 per kg from its closing on November 26.
So far in November, the yellow metal has lost nearly Rs 950, or 2.44 percent while silver has shed Rs 2,300 or 4.92 percent.
Karan Shah, Commodity and Currency Analysts at Indiabulls Ventures said, ‘Bullion continues to remain under pressure on comments by Trump who said an interim trade deal with China is close, thereby boosting demand for riskier assets. Back-to-back comments over the possibility of reaching the trade deal at the earliest have raised the risk appetite and put pressure on bullion. The surge in the dollar index has also been pushing metals lower."
Also supporting the dollar were comments by the US Federal Reserve Chairman Powell who recently stated that the US economy is in good shape and doesn’t require further rate cuts at the moment. We expect gold to trade with mild negative bias within a range of 37,400-37,850.
The gold/silver ratio that refers to the amount of silver required to buy an ounce of gold currently stands at 85.32 to 1.
In the futures market, gold rate touched an intraday high of Rs 37,690 and an intraday low of Rs 37,605 on MCX. For the December series, the yellow metal touched a low of Rs 32,289 and a high of Rs 40,771.
Gold futures for delivery in December slipped Rs 95, or 0.25 percent on the MCX trading at Rs 37,623 per 10 gram in evening trade in a business turnover of 6,909 lots. Gold contracts for February delivery were lowered by Rs 101, or 0.27 percent, at Rs 37,692 per 10 gram in a business turnover of 13,293 lots.
The value of the December contract traded so far is Rs 1,639.55 crore and February contract saw the value of Rs 454.14 crore.
Similarly, Gold Mini contract for December was down by Rs 83, or 0.22 percent at Rs 37,692 in a business turnover of 6,203 lots.
MCX Gold has support at Rs 37,615-37,480 whereas resistance is at Rs 37,840-37,900. Sideway to negative movement is expected for the day, according to Motilal Oswal. The brokerage firm advised its client to sell near the resistance area targeting support of Rs 37,615-37,480.
The brokerage firm said spot gold has key support at $1,440 whereas resistance remains at $1,470.
At 12:01 pm (GMT) spot gold was down by $2.45 at $1,464.95 an ounce in London trading.