Gold price gained Rs 392 to Rs 43,675 per 10 gram in the Mumbai bullion market on a weak dollar. Major gold trading centres have been shut due to the nationwide lockdown to prevent the spread of coronavirus disease.
The rate of 10 gram 22-carat gold in Mumbai was Rs 40,006 plus 3 percent GST, while 24-carat 10 gram was Rs 43,675 plus GST. The 18-carat gold quoted at Rs 32,756 plus GST in the retail market.
“Gold eased amidst continued profit booking after prices hit a two-week high in the last session due to hopes for further stimulus to curb the coronavirus' economic toll. But, the metal was headed for its best weekly gain in more than 11 years,” said Navneet Damani, Vice President, Motilal Oswal.
The number of Americans filing claims for unemployment benefits surged to a record of over three million last week as strict measures to contain the virus brought the country to a sudden halt.
The broader trend on Comex could be $1,595-1,645 and on the domestic front, the prices could hover in the range of RS 42,800-43,700, said Damani.
The gold/silver ratio or the amount of silver needed to buy an ounce of gold stood at 104.98 to 1.
Silver prices gained Rs 790 to Rs 41,600 per kg from its closing on March 26.
The yellow metal has gained Rs 2,3401, or 5.66 percent for the week, while silver jumped Rs 4,460 or 12 percent in the same period.
In the futures market, the gold rate touched an intraday high of Rs 43,760 and an intraday low of Rs 42,800 on MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 44,961.
Gold futures for delivery in April slipped Rs 243, or 0.56 percent on the MCX trading at Rs 43,299 per 10 gram in evening trade in a business turnover of 1,153 lots. Gold contracts for June delivery eased Rs 332, or 0.76 percent, at Rs 43,311 per 10 gram in a business turnover of 16,700 lots. The far month August contract was gained Rs 185, or 0.43 percent at Rs 43,460 in a business turnover of 1,577 lots.
The value of the April contract traded so far is Rs 1,310.29 crore and June contract saw the value of Rs 1,578.54 crore.
Similarly, Gold Mini contract for April was down by Rs 281, or 0.64 percent at Rs 43,350 in a business turnover of 3,591 lots.
Axis Securities advised its clients to buy April Gold at Rs 43,500 with a stop loss at Rs 43,350 and a target of Rs 43,700.
MCX Gold has intraday support at Rs 43,220-42,990 whereas resistance is placed at Rs 43,780-43,950 levels, according to Motilal Oswal.
The brokerage firm said spot gold has support at $1,592-1575 whereas resistance is at $1,638-1,655.
At 12:33 pm (GMT), spot gold was down $8.99 at $1,618.80 an ounce in London trading.