Gold prices gained Rs 194 to Rs 38,487 per 10 gram in Mumbai bullion market on weak rupee as traders increased their bets on firm overseas trend.
The rate of 10 grams 22-carat gold in Mumbai was at Rs 35,254 plus 3 percent GST, while 24-carat 10 gram was Rs 38,487 plus GST. The silver price gained Rs 105 to Rs 45,375 per kg from its closing price on October 11.
Kumar Jain, Vice President, Mumbai Jewellers Association told Moneycontrol that customers are hesitant to buy fresh gold jewellery due to higher prices and are recycling their gold jewellery and invested gold.
Jewellers are resting their hopes on a revival of demand led by upcoming Diwali and wedding season, Jain said.
The gold/silver ratio currently stands at 85.14 to 1 which means the amount of silver requires to buy one ounce of gold.
In the futures market, gold rate touched an intraday high of Rs 38,280 and an intraday low of Rs 37,771 on MCX. For the December series, the yellow metal touched a low of Rs 32,289 and a high of Rs 40,771.
Gold futures for delivery in December gained Rs 336, or 0.89 percent on the MCX trading at Rs 38,181 per 10 gram in afternoon trade in a business turnover of 20,414 lots. Gold contracts for February delivery traded were higher by Rs 311, or 0.82 percent, at Rs 38,448 per 10 gram in a business turnover of 2,916 lots.
The value of the December contract traded so far is Rs 3,659.05 crore and February contract saw value of Rs 123.50 crore.
Similarly, Gold Mini contract for November was up by Rs 314, or 0.83 percent at Rs 38,153 in a business turnover of 10,418 lots.
MCX Gold is expected to trade positively with support at Rs 37,900 levels and intermediate support at Rs 38,050 level, according to Motilal Oswal. The brokerage firm advised its clients to buy gold with a target in the range of Rs 38.450-38,600 zone.
It said the spot gold is expected to trade in the range of $1,485-$1,520 range with positive bias.
At 12:26 pm (GMT) spot gold was trading higher by $10.30 at $1,493.00 an ounce in London trading.
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