Gold prices continued to fall on profit-booking for the fourth consecutive day on February 28. to close at Rs 42,524 per 10 gram in the Mumbai bullion market.
The rate of 10 grams 22-carat gold in Mumbai was Rs 38,952 plus 3 percent GST, while 24-carat 10 gram was Rs 42,524 plus GST. The 18-carat gold quoted at Rs 31,893 plus GST in the retail market.
According to Navneet Damani, Vice President - Motilal Oswal, the broader trend on Comex could be $1,600-1,670 and on the domestic front, prices could hover in the range of Rs 41,800-42,950.
Damani noted that gold prices edged higher in yesterday’s session as worries intensified that the rapidly-spreading coronavirus could turn into a pandemic and derail global economic growth. The nervousness caused global share prices to post the worst week since the 2008 financial crisis with US bond yields slipping below 1.3 levels.
The gold/silver ratio that refers to the amount of silver required to buy an ounce of gold currently stands at 93.42 to 1.
Silver prices fell Rs 1,515 to Rs 45,515 per kg from its closing on February 27. The precious metal gained Rs 782, or 1.87 percent for the week, while silver declined Rs 2,090 or 4.39 percent in the same period.
In the futures market, gold rate touched an intraday high of Rs 42,747 and an intraday low of Rs 42,250 on MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 43,788.
Gold futures for delivery in April slipped Rs 72, or 0.17 percent on the MCX trading at Rs 42,313 per 10 gram in evening trade in a business turnover of 14,713 lots. Gold contracts for June delivery eased Rs 48, or 0.11 percent, at Rs 42,550 per 10 gram in a business turnover of 8,599 lots.
The value of the April contract traded so far is Rs 7,013.97 crore and June contract saw the value of Rs 250.10 crore.
Similarly, Gold Mini contract for April declined Rs 66, or 0.16 percent at Rs 42,290 in a business turnover of 23,604 lots.
A note by Axis Securities said, "Gold price is trading volatile in a range between Rs 42,360 and 42,660 levels from last few hours. We expect prices to trade in the mentioned range as long as we don't see any breakout or breakdown above or below the mentioned level."
Source: Axis Securities
The broking firm advised clients to buy April Gold around Rs 42,380 level with a stop loss at Rs 42,280 and a target of Rs 42,500.
Motilal Oswal expects MCX Gold to trade in a range for the session with support placed at Rs 42,265-42,670. The brokerage expects spot gold intraday support at $1,607-1,602 and resistance is at $1,632-1,638.
At 13:04 pm (GMT), spot gold slipped $19.68 at $1,622.27 an ounce in London trading.