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Last Updated : Mar 26, 2020 12:07 PM IST | Source:

Gold price tops Rs 43,000 per 10 gram, silver up Rs 575 per kg

The broader trend on Comex could be $1,580-1,640 and on domestic front prices could hover in the range of Rs 40,600-42,000, said Damani.

Gold price rose Rs 1,177 to Rs 43,424 per 10 gram in the Mumbai bullion market on a weaker dollar, but the gains were capped by a stronger rupee. The major gold trading centres have been shut due to lockdown announced by state governments to prevent the spread of coronavirus disease with only online sales taking place.

The rate of 10 gram 22-carat gold in Mumbai was Rs 39,776 plus 3 percent GST while 24-carat 10 gram was Rs 43,424 plus GST. The 18-carat gold quoted at Rs 32,568 plus GST in the retail market.

Like most asset classes, gold has been affected by widespread, rapid-fire asset sales and a dash for cash. Notwithstanding the current price volatility,


“I believe gold is as relevant as ever and will play an increasingly important role in investors’ portfolios in the years to come. The long-term implications of ballooning budget deficits, negative real rates, and debasement of currencies should support gold in future,” said David Tait, CEO - World Gold Council.

“Gold prices rose for the third straight session after hitting the highest in about two weeks as positive rhetoric from US lawmakers regarding a stimulus bill to cushion the economic damage from the coronavirus outbreak lifted investors sentiment,” said Navneet Damani, Vice President - Motilal Oswal.

The deep impact of the virus can be seen through the disappointed PMI numbers released by major economies. Market participants will keep an eye on the inflation numbers from the UK and Core durables goods orders number expected from the US.

The broader trend on Comex could be $1,580-1,640 and on domestic front prices could hover in the range of Rs 40,600-42,000, said Damani.

The gold/silver ratio currently stands at 106.17 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices jumped Rs 575 to Rs 40,900 per kg from its closing on March 24.

In the futures market, gold rate touched an intraday high of Rs 42,785 and an intraday low of Rs 40,811 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 gained Rs 827, or 2 percent on the MCX trading at Rs 42,206 per 10 gram in evening trade in a business turnover of 3,486 lots. Gold contract for June delivery rose Rs 695, or 1.65 percent, at Rs 42,800 per 10 gram in a business turnover of 15,547 lots. The far month August contract was trading up Rs 748, or 1.77 percent at Rs 42,975 in a business turnover of 614 lots.

The value of the April contract traded so far is Rs 2,585.37 crore and June contract saw the value of Rs 1,700.28 crore.

Similarly, Gold Mini contract for April was higher by Rs 415, or 0.99 percent at Rs 42,288 in a business turnover of 3,835 lots.

Axis Securities advised its clients to buy April Gold at Rs 42,350 with a stoploss at Rs 42,200 and a target of Rs 42,600.

MCX Gold has intraday support at Rs 42,065-41,875 whereas resistance is placed at Rs 42,710-42,970 levels, according to Motilal Oswal.

The brokerage firm said spot gold has support at $1,603-1580 whereas resistance is at $1,638-1,652.

At 13:06 pm (GMT), spot gold was marginally down $2.83 at $1,613.92 an ounce in London trading.

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First Published on Mar 25, 2020 07:24 pm
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