Navneet Damani, Vice President, Motilal Oswal, sees gold trading in a range of $1,750-1,788 internationally and between Rs 48,060 and Rs 48,550 domestically
Gold prices declined Rs 578 to Rs 48,886 per 10 gram in the Mumbai bullion market on rupee appreciation versus the dollar and rally in equity markets. Globally too, the rally has lost steam and failed to sustain above the $1,800/oz level.
The precious metal came under selling pressure on reports of successful human trials of a new vaccine for the novel coronavirus, which boosted investment sentiments for riskier assets. However, rising COVID-19 cases may keep downside limited in gold prices as fear of the second wave of virus infections may re-impose lockdown measures in a few countries.
India’s gold imports plunged 86 percent to 11 tonne in June due to record high prices, nationwide lockdown and international air travel ban, Reuters reported.
The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 36,231, Rs 44,250 and Rs 48,308 plus 3 percent GST, respectively.
“Gold has been on a dream run given the prevailing risk aversion sentiment. World ETFs holding has been steadily on the rise and looks like the momentum may continue. Gold prices may take smaller breathers, but so long as uncertainty on COVID-19 prevails, it may continue its northward journey,” said Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Company.
Navneet Damani, Vice President, Motilal Oswal, sees gold trading in a range of $1,750-1,788 internationally and between Rs 48,060 and Rs 48,550 domestically.
The gold-to-silver ratio currently stands at 99.44 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices declined Rs 1,075 to Rs 48,580 per kg from its closing on July 1.
In the futures market, gold touched an intraday high of Rs 48,273 and an intraday low of Rs 47,935 on the Multi-Commodity Exchange (MCX). For the August series, the yellow metal touched a low of Rs 39,200 and a high of Rs 48,982.
Gold futures for August delivery eased Rs 332, or 0.69 percent, at Rs 47,935 per 10 gram in evening trade on a business turnover of 12,524 lots. The same for October delivery was down Rs 335, or 0.69 percent, at Rs 48,054 on a business turnover of 6,662 lots.
The value of the August and October contracts traded so far is Rs 3,271.31 crore and Rs 86.28 crore, respectively.
Similarly, Gold Mini contract for August slipped Rs 311, or 0.64 percent, at Rs 47,962 on a business turnover of 12,016 lots.
"On the technical charts, gold has given a negative breakout from rising trend line channel. It is expected to trade negatively. Sustaining below Rs 48,100 would push price lower towards Rs 47,800-47,700 levels intraday," Axis Securities said.
At 12:21 (GMT), spot gold was down $2.20 at $1,768.20 an ounce in London.For all commodities related news, click here