Gold price steady at Rs 48,120 per 10 gram, silver slips

Gold prices were steady at Rs 48,120 per 10 gram in the Mumbai bullion market on appreciation of the rupee against the dollar.

The rate of 10 gram 18, 22, and 24-carat gold in Mumbai was Rs 36,090, Rs 44,078 and Rs 48,120 plus 3 percent GST.

Market participants will keep an eye on the preliminary PMI numbers from major economies.

“Geopolitical tensions have been supportive as US and China have been at loggerheads over various issues including handling of virus outbreak and security law for Hong Kong. This increasing discontent has kept market players nervous about the future of the fragile trade deal signed in January. Gold may remain choppy amid mixed factors, however the general bias may be on the upside,” Ravindra Rao, VP-Head Commodity Research, Kotak Securities, said.

Navneet Damani, Vice President, Motilal Oswal, said gold prices climbed a percent to hit the highest in more than a month as investors took refuge in the safe haven metal after an uptick in coronavirus cases roiled hopes for a quick economic recovery.

Damani said the broader trend on COMEX could be in the range of $1740-1770. "On the domestic front, prices could hover in the range of Rs 47,700-48,150."

The gold/silver ratio currently stands at 99.33 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices fell Rs 385 to Rs 48,440 per kg from its closing on June 22.

In the futures market, gold touched an intraday high of Rs 48,019 and an intraday low of Rs 47,731 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 48,289.

Gold futures for August delivery slipped Rs 31, or 0.06 percent, at Rs 47,913 per 10 gram in evening trade on a business turnover of 14,287 lots. The same for October delivery eased Rs 23, or 0.05 percent, at Rs 48,068 on a business turnover of 5,742 lots.

The value of the August and October contracts traded so far is Rs 3,206.45 crore and Rs 40.85 crore, respectively.

Similarly, Gold Mini contract for July declined Rs 32, or 0.07 percent, at Rs 47,880 on a business turnover of 9,546 lots.

At 12:01 am (GMT), spot gold was up $3.12 at $1,757.95 an ounce in London trading.

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