Gold price slips Rs 83 to Rs 38,029 per 10 grams, silver down 0.51%

Gold prices slipped Rs 83 to Rs 38,029 per 10 gram in Mumbai bullion market after the House of Representatives formally voted to impeach President Trump on charges of abuse of power and obstruction of Congress.

The rate of 10 grams 22-carat gold in Mumbai was Rs 34,835 plus 3 percent GST, while 24-carat 10 gram was Rs 38,029 plus GST. The 18-carat gold quoted at Rs 28,522 plus GST in the retail market.

Silver prices slipped Rs 225 to 43,975 per kg from its closing on December 18.

The gold/silver ratio currently stands at 86.47 to 1, which means the amount of silver required to buy one ounce of gold.

In the futures market, gold rate touched an intraday high of Rs 37,977 and an intraday low of Rs 37,860 on 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 40, or 0.11 percent on the MCX trading at Rs 37,872 per 10 gram in evening trade in a business turnover of 16,099 lots. Gold contracts for April delivery slipped Rs 35, or 0.09 percent, at Rs 37,935 per 10 gram in a business turnover of 3,714 lots.

The value of the February contract traded so far is Rs 1,841.03 crore and April contract saw the value of Rs 139.38 crore.

Similarly, Gold Mini contract for January was down Rs 43, or 0.09 percent at Rs 37,889 in a business turnover of 8,281 lots.

Gold price is trading under ascending triangle pattern, price is expected to trade lower. Gold has a trading range of Rs 37,500-38,300 level, according to Axis Securities.

Sustaining below Rs 37,960 would drag price lower towards Rs 37,800-37,700. Alternatively, Rs 38,030 would act as a strong resistance level in intraday. Price is trading below 20 and 60 EMA which is a bearish sign for prices.

The brokerage firm advised its clients to sell February gold at Rs 37,960 per 10 gram with stop loss at Rs 38,030 and target of Rs 37,800.

MCX Gold has support at Rs 37,840-37,760 whereas resistance is at Rs 38,100-38,230. Sideways movement is expected for the day, according to Motilal Oswal. Price break of the given range will give further direction in trend.

The brokerage firm said spot gold has key support at $1,465 whereas resistance remains at $1,490.

At 11:35 pm (GMT) spot gold was marginally down $0.95 at $1,477.75 an ounce in London trading.