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Gold prices rise Rs 92 to Rs 38,121 per 10 grams, up 0.77% for the week

The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 86.14 to 1.

December 20, 2019 / 07:00 PM IST

Gold prices gained Rs 92 at Rs 38,121 per 10 grams in Mumbai's bullion market over a weak rupee and political uncertainty in the US following Donald Trump's impeachment by the House of Representatives.

The precious metal rose Rs 294 for the week and gained 20.21 percent in 2019. While silver prices jumped Rs 370 to Rs 44,250 per kilogram in the same period.

The rate of 10 grams, 22-carat gold in Mumbai was at Rs 34,919 plus 3 percent GST, while that of 10 grams, 24-carat gold was Rs 38,121 plus GST. The prices of 18-carat gold quoted at Rs 28,591 plus GST in the retail market.

Silver prices gained Rs 275 to 44,250 per kg from its closing on December 19.

The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 86.14 to 1.

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Also read: Gold, fixed-income wrap 2019: Yellow metal's prices zoom, long-term bonds deliver

In the futures market, gold rates touched an intraday high of Rs 38,039 and an intraday low of Rs 37,976 on the 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 eased Rs 70, or 0.18 percent on the MCX trading at Rs 38,039 per 10 grams in the evening's trade for a business turnover of 16,037 lots. Gold contracts for delivery in April slipped Rs 98, or 0.26 percent, at Rs 38,063 per 10 grams in a business turnover of 3,909 lots.

The value of the February contracts traded so far is Rs 1,677.83 crore and that of April contracts saw a value of Rs 54.46 crore.

Similarly, Gold Mini contracts for January was down Rs 60, or 0.16 percent at Rs 38,050 in a business turnover of 8,239 lots.

Also read: Gold shines in 2019; 4 ways to play the precious metal in 2020

According to Axis Securities, gold prices are giving a strong resistance level break out and are trading near a rising trend line support. The brokerage firm expects gold prices to trade higher, and that sustaining above Rs 37,960 in the next leg of a positive rally would push prices towards Rs 38,100-38,200.

The brokerage firm also suggested that alternatively, Rs 37,850 may act as strong support in intraday and that the short term trend price remains to trade sideways between Rs 37,500-38,300 levels.

The brokerage firm advised its clients to buy February gold at Rs 37,960 per 10 gram with a stop loss at Rs 37,850 and target of Rs 38,100.

MCX Gold has support at Rs 37,880-37,790, whereas resistance is at Rs 38,130-38,250. Sideways to positive movement is expected for the day, according to Motilal Oswal. The brokerage firm advised its clients to buy on dips, targeting resistance levels of Rs 38,130-38,250.

The brokerage firm said spot gold has key support at $1,465 whereas resistance remains at $1,495.

At 12:23 pm (GMT) spot gold was marginally down $1.95 at $1,482.45 an ounce in London trading.
Moneycontrol News
first published: Dec 20, 2019 06:57 pm

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