Gold price tops Rs 46,000 per 10 gram, silver slips

Gold prices gained Rs 492 to Rs 46,085 per 10 gram in the Mumbai bullion market on safe-haven appeal but gains were capped by a stronger rupee.

Major gold-trading centres have remained shut in the country due to the coronavirus-led lockdown.

The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 34,564, Rs 42,214 and Rs 46,085 plus 3 percent GST, respectively.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said gold recovered on April 22 with spot prices trading close to $1,700 per troy ounce and above Rs 46,000/10 gram on the MCX.

Going forward, he expects prices to remain positive. “If there is no more selling in crude oil, then we may see gold prices inching higher.”

So, what’s the outlook on the yellow metal? Rao said that if gold is able to sustain above Rs 46,300-46,350 on the MCX, then it may touch Rs 46,800-47,000 levels.

Although, series of aggressive steps taken by central banks to ease the economic damage from the novel coronavirus impact and continuous inflows in ETFs, which are currently at their highest in over three years, are likely to lend support to gold prices. On the data front, market participants will be keeping an eye on the inflation number expected from the UK.

The broader trend on Comex could be $1,670-1,715 and on domestic front prices could hover in the range of Rs 45,500-46,350, Navneet Damani, Vice President, Motilal Oswal, said.

The gold/silver ratio currently stands at 110.78 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices slipped Rs 100 to Rs 41,600 per kg from its closing on April 21.

In the futures market, gold rate touched an intraday high and low of Rs 46,245 and Rs 45,560 on the MCX, respectively. For the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 47,327.

Gold futures for delivery in June gained Rs 850, or 1.88 percent, closing at Rs 46,175 per 10 gram on the MCX. The same for August delivery rose Rs 792, or 1.74 percent, to Rs 46,291 per 10 gram.

The value of the June and August contract traded for the day was Rs 3,564.51 crore and Rs 388.74 crore, respectively.

Similarly, Gold Mini contract for May jumped Rs 791, or 1.74 percent, at Rs 46,174.

At 12:25 pm (GMT), spot gold was up by $10.76 at $1,696.88 an ounce in London trading.