Gold price steady at Rs 40,496 per 10 gram, silver slips by Rs 295 per kg

Gold price on March 19 slipped marginally by Rs 41 to Rs 40,496 per 10 gram in Mumbai bullion market on stronger dollar and investor preference for cash.

The rate of 10 gram 22-carat gold in Mumbai was Rs 37,094 plus 3 percent GST, while 24-carat 10 gram was Rs 40,496 plus GST. The 18-carat gold quoted at Rs 30,372 plus GST in the retail market.

"Gold prices tried to breach the $1500 zone in the previous session although could not sustain and again were trapped by the bears. Investors dumped precious metals in favour of cash after additional stimulus measures by the US failed to calm markets hit by mounting fears over the economic downside from the coronavirus outbreak," said Navneet Damani, Vice President, Motilal Oswal.

The broader trend on Comex could be $1,450-1,515 and on domestic front prices could hover in the range of Rs 39,300-41,000, said Damani.

The gold/silver ratio currently stands at 114.98 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices declined Rs 295 to Rs 35,220 per kg from its closing on March 18.

In the futures market, gold rate touched an intraday high of Rs 40,099 and an intraday low of Rs 39,052 on MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 44,961.

Gold futures for delivery in April eased Rs 223, or 0.56 percent on the MCX trading at Rs 39,500 per 10 gram in evening trade in a business turnover of 6,620 lots. Gold contracts for June delivery slipped Rs 283, or 0.71 percent, at Rs 39,620 per 10 gram in a business turnover of 12,874 lots.

The value of the April contract traded so far is Rs 3,942.96 crore and June contract saw the value of Rs 625.08 crore.

Similarly, Gold Mini contract for April was down Rs 139, or 0.35 percent at Rs 39,625 in a business turnover of 5,254 lots.

Axis Securities advised its clients buy April Gold at Rs 39,700 with stoploss at Rs 39,550 and a target of Rs 40,550.

MCX Gold has intraday resistance at Rs 40,130-40,370 whereas support is placed at Rs 39,310-39,040 levels, according to Motilal Oswal.

The brokerage firm said spot gold has support at $1,455-1440 whereas resistance is at $1,508-1,525.

At 13:52 pm (GMT), spot gold was down $11.43 at $1,474.76 an ounce in London trading.

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