Gold price slips below Rs 46,000 per 10 gram, silver up

The broader trend on Comex could be $1,695-1,735 and on the domestic front, prices could hover in the Rs 45,800- 46,465 range, says Navneet Damani of Motilal Oswal.

April 29, 2020 / 10:24 PM IST

Gold prices declined Rs 291 to Rs 45,904 per 10 gram in the Mumbai bullion market on rupee appreciation and a rally in the stock market. Easing of coronavirus restriction in some countries and the US Federal Reserve policy decision, expected later on April 29, also weighed on the metal.

Major gold-trading centres have remained shut in the country due to the lockdown announced to prevent the spread of coronavirus.

The rate of 10 gram 22-carat gold in Mumbai was Rs 42,048 plus 3 percent GST, while 24-carat 10 gram was Rs 45,904 plus GST. The 18-carat gold quoted at Rs 34,428 plus GST in the retail market.

“Gold prices traded steady during the day as traders are awaiting US Fed decision. The new stimulus package announcement can support gold prices to trade higher. However, the expectations of easing of lockdown measures have kept prices under pressure. We expect prices to trade sideways for the day, with MCX Gold June support at Rs 45,700, resistance at Rs 46,200,” said Tapan Patel- Senior Analyst (Commodities), HDFC Securities.

“Gold fell to a one-week low in the yesterday's session as investors took profits, with bullion further weighed down by upbeat plans in some countries to loosen restrictions put in place due to the coronavirus. On data front, US consumer confidence tumbled to near a six-year low in April. Investors will now look for any forward guidance from the US Fed, which is expected to issue a policy statement later today,” said Navneet Damani, Vice President, Motilal Oswal.

Close

The ECB meets on April 30. Apart from Fed, US Q1 GDP will also be in focus, any number reported which is weaker than the expectations it might lend support to gold prices.

The broader trend on Comex could be $1,695-1,735 and on the domestic front, prices could hover in the range of Rs 45,800- 46,465.

According to Ravindra Rao, VP-Head Commodity Research at Kotak Securities, Comex gold was trading in a very narrow range, with a slight lower bias as traders were awaiting the FOMC meeting decision.

Improved risk sentiment had reduced the safe-haven appeal of gold. The focus will also be on the key US GDP data, expected to show a sharp contraction in the first quarter owing to virus-related restriction. A weaker reading has been factored in and the actual number might impact gold prices.

The gold/silver ratio currently stands at 109.21 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices gained Rs 380 to Rs 42,030 per kg from its closing on April 28.

In the futures market, gold touched an intraday high of Rs 46,177 and an intraday low of Rs 45,810 on MCX. For the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 47,327.

Gold futures for delivery in June slipped Rs 96, or 0.21 percent, on the MCX, trading at Rs 45,970 per 10 gram in the evening in a business turnover of 14,377 lots. Gold contracts for August delivery eased Rs 152, or 0.33 percent, at Rs 46,085 per 10 gram in a business turnover of 5,340 lots.

The value of the June contract traded, so far, is Rs 2,350.95 crore and August contract saw the value of Rs 479.52 crore.

Similarly, Gold Mini contract for June declined Rs 104, or 0.23 percent at Rs 45,970 in a business turnover of 8,617 lots.

MCX Gold price is expected to trade positively with support at Rs 45,550 and intermediate support at Rs 45,750, according to Motilal Oswal. The brokerage firm advised clients to buy on dip targeting higher resistance at Rs 46,100-46,250.

The broking said spot gold will trade in a range of $1,690-1,735 range with positive bias.

At 12:15 GMT, spot gold was up by $2.72 at $1,711.19 an ounce in London trading.

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Sandeep Sinha
first published: Apr 29, 2020 06:29 pm

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