Gold price inches closer to Rs 44,000, silver up Rs 1,050

The gold price rose Rs 462 to Rs 43,936 per 10 gram in the Mumbai bullion market as the rupee depreciated. India’s major gold trading centres have been shut due to the 21-day lockdown to prevent the spread of the coronavirus.

The metal price gained Rs 261, or 0.60 percent, during the week against a 5.66 percent increase seen in the previous week.

The rate of 10 gram 22-carat gold in Mumbai was Rs 40,245 plus 3 percent GST, while 24-carat 10 gram was Rs 43,936 plus GST. The 18-carat gold quoted at Rs 32,952 plus GST in the retail market.

Gold prices jumped over 1 percent in the April 1 session, as record high US jobless claims for a second week in a row intensified fears of economic damage due to the coronavirus and drove investors towards the safe-haven metal, said Navneet Damani, Vice President, Motilal Oswal.

After such a huge jump in the weekly jobless claims, market participants would keep an eye on the non-farm payroll numbers expected later on April 3. The service PMI numbers expected from major economies would also be tracked.

The broader trend on Comex could be $1,580-1,640 and on domestic front prices could hover in the range of Rs 43,300-44,150.

“MCX Gold Futures is expected to remain bullish in the coming week amid rising deaths owing to the coronavirus pandemic. However, major upside movement in global gold prices could be capped amid stronger dollar in the global market with a stimulus package by the Fed to the other central banks in order to counter the virus in exchange for treasury”, said Sumeet Bagadia, Executive Director, Choice Broking.

Buying of gold for investments was near negligible amid lockdown, however, MCX gold futures continued to find support amid falling equity markets and a weaker rupee, Bagadia said.

The gold/silver ratio currently stands at 109.02 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices rose Rs 1,050 to Rs 40,300 per kg from its closing on April 1. The white metal had shed Rs 1,050, or 2.66 percent during the week.

In the futures market, gold rate touched an intraday high of Rs 43,870 and an intraday low of Rs 43,500 on MCX. For the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 45,361.

Gold futures for delivery in June gained Rs 480, or 1.11 percent on the MCX, trading at Rs 43,720 per 10 gram in a business turnover of 16,812 lots. Gold contracts for August delivery rose Rs 495, or 1.14 percent, at Rs 43,860 per 10 gram in a business turnover of 341 lots.

The value of the June contract traded so far is Rs 1,770.63 crore and August contract saw the value of Rs 149.55 crore.

Similarly, Gold Mini contract for May jumped Rs 438, or 1.01 percent at Rs 43,670 in a business turnover of 7,414 lots.

At 1204 pm GMT, spot gold was up $3.59 at $1,617.87 an ounce in London trading.