Gold prices remained firm at Rs 40,780 per 10 gram in the Mumbai bullion market on rupee depreciation.
The rate of 10 grams 22-carat gold in Mumbai was Rs 37,354 plus 3 percent GST while 24-carat 10 gram was Rs 40,780 plus GST. The 18-carat gold quoted at Rs 30,585 plus GST in the retail market.
According to Navneet Damani, Vice President, Motilal Oswal, gold prices held steady near a one-week high, as a mounting coronavirus death toll supported safe-haven buying, while a stronger dollar capped gains.
The Chinese province at the centre of the coronavirus outbreak reported a record rise in deaths and thousands of more infections using a broader definition in the previous session. Tensions between the US and Iran provide support to the precious metal pack. Market participants will focus on the EU GDP number and industrial and core retail sales number expected from the US.
The Broader trend on Comex could be $1,560-1,590 and on the domestic front, prices could hover in the range of Rs 40,300-40,950, said Damani.
The gold/silver ratio that refers to the amount of silver needed to buy an ounce of gold stood at 88.65 to 1.
Silver prices gained Rs 110 to Rs 46,000 per kg from its closing on February 13. The precious metal has gained Rs 114, or 0.28 percent for the week, while silver declined Rs 230 or 0.50 percent in the same period.
In the futures market, gold rate touched an intraday high of Rs 40,840 and an intraday low of Rs 40,573 on MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 41,567.
Gold futures for delivery in April gained Rs 173, or 0.43 percent on the MCX trading at Rs 40,829 per 10 gram in evening trade in a business turnover of 16,717 lots. Gold contracts for June delivery were up Rs 145, or 0.36 percent, at Rs 40,975 per 10 gram in a business turnover of 6,275 lots.
The value of the April contract traded so far is Rs 2,261.78 crore and June contract saw the value of Rs 79.59 crore.
Similarly, Gold Mini contract for March rose Rs 155, or 0.38 percent at Rs 40,735 in a business turnover of 8,542 lots.
Gold price is trading under ascending triangle pattern, price is expected to trade positive. Sustaining above Rs 40,650 next leg of the positive rally would push the price higher towards Rs 40,850-41,000 levels, according to Axis Securities.
On the hourly chart, price is trading above 9, 21 & 60 EMA which is a bullish sign for price. The Relative Strength Index (RSI) is trading at 60 indicating higher momentum in price.
The broking firm advised its client to buy April Gold at Rs 40,650 with stop loss at Rs 40,500 and a target of Rs 40,850.
MCX Gold has intraday support at Rs 40,525-40,460 whereas resistance is at Rs 40,800-40,870, according to Motilal Oswal.
The brokerage firm said spot gold has strong support at $1,560-1,557 whereas resistance is at $1,585-1,590.
At 2:06 pm (GMT), spot gold was up $3.38 at $1,579.55 an ounce in London trading.
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