The broader trend on COMEX could be in the range of $1825- 1890 and on the domestic front, prices could hover in the range of Rs 49,000-49,880.
Gold prices weakened for the fourth successive day by Rs 505 to Rs 49,822 per 10 gram in the Mumbai retail market on firm US dollar and sell-off in equity markets. The precious metal is volatile today after a sharp 2.1 percent decline yesterday.
The rate of 10 gram 22-carat gold in Mumbai was Rs 45,637 plus 3 percent GST, while 24-carat 10 gram was Rs 49,822 plus GST. The 18-carat gold quoted at Rs 37,367 plus GST in the retail market.
Gold has been under pressure this week as the US dollar is being seen as the preferred safe-haven asset amid renewed risk aversion in global financial markets.
The US Fed’s signal for further stimulus also boosted buying in the dollar which pushed precious metals down.
US business activity cooled, with gains at factories offset by a retreat at services; on other hand, EU business activity took a halt amidst the rise in COVID-19 cases.
SPDR Gold holdings decreased 11.09 tonne to 1267.13 tonnes.
MCX iCOMDEX Bullion Index slipped 74.04 points, or 0.49 percent, at 15,006.09 at 17:23. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Navneet Damani, Vice President, Motilal Oswal said, “Gold extended losses and fell to its lowest level since mid-August in yesterday's session as the dollar advanced, with investors awaiting further response from major central banks as economic uncertainty looms. Meanwhile, US Fed officials and Governor J Powell shared the same view that monetary policy will need to remain accommodative for quite some time in order to support the economy.”
Investors now await US weekly jobless claims data. If it is recorded higher than expectations it could support precious metal prices on lower levels. The broader trend on COMEX could be in the range of $1825- 1890 and on the domestic front prices could hover in the range of Rs 49,000-49,880.
“COMEX gold trades lower near $1852/oz. Gold has penetrated the key $1900/oz level and may remain under pressure unless we see a substantial correction in US dollar,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
The gold/silver ratio currently stands at 88.22 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices declined by Rs 2,437 to Rs 56,471 per kg from its closing on September 23.
In the futures market, the gold rate touched an intraday high of Rs 49,572 and an intraday low of Rs 49,248 on the Multi-Commodity Exchange (MCX). For the October series, the yellow metal touched a low of Rs 45,596 and a high of Rs 56,191.
Gold futures for October delivery slipped Rs 28, or 0.06 percent, at Rs 49,480 per 10 gram in evening trade on a business turnover of 6,017 lots. The same for December gained Rs 18, or 0.04 percent, at Rs 49,568 on a business turnover of 12,159 lots.
The value of the October and December contracts traded so far is Rs 3,769.84 crore and Rs 806.67 crore, respectively.
Similarly, Gold Mini contract for October edged lower by Rs 39, or 0.08 percent at Rs 49,537on on a business turnover of 10,037 lots.
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking Ltd said, as for today traders can go for sell in gold at Rs 49,500 levels with the stop loss of Rs 49,950 levels for the target of Rs 48,700 levels.
At 1206 (GMT), spot gold slipped $7.22 at $1,856.33 an ounce in London trading.For all commodities-related news, click here