Gold prices registered a fall for the sixth consecutive day on March 17 due to rupee appreciation and profit booking.
The yellow metal has turned negative for the year, down 2.24 percent in dollar terms and up 1.65 percent in rupee term following sell-off by funds and ETF redemptions by investors.
The rate of 10 gram 22-carat gold in Mumbai was Rs 36,535 plus 3 percent GST, while 24-carat 10 gram was Rs 39,886 plus GST. The 18-carat gold quoted at Rs 29,914 plus GST in the retail market.
"Gold and silver experienced heavy selling amidst disarray in global equities. Silver slumped to their worst in more than a decade due to unwinding of long positions after a hike in margin calls which forced traders to reduce their positions and cover losses in other asset classes," said Navneet Damani, Vice-President, Motilal Oswal.
After aggressive rate cuts and easing measures already taken by few central banks like FED, BOE, ECB etc. market participants will keep their eyes on other major central bank actions scheduled later in the month to gauge impact of COVID-19.
The broader trend on Comex could be $1,468-1,520 and on domestic front prices could hover in the range of Rs 38,000-40,000, said Damani.
The gold/silver ratio currently stands at 113.48 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices declined Rs 1,495 to Rs 35,145 per kg from its closing on March 16.
In the futures market, gold rate touched an intraday high of Rs 39,740 and an intraday low of Rs 38,650 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 dipped Rs 336, or 0.85 percent on the MCX trading at Rs 39,182 per 10 gram in evening trade in a business turnover of 7,336 lots. Gold contracts for June delivery slipped Rs 429, or 1.08 percent, at Rs 39,460 per 10 gram in a business turnover of 13,136 lots.
The value of the April contract traded so far is Rs 4,744.58 crore and June contract saw the value of Rs 743.16 crore.
Similarly, Gold Mini contract for April was down Rs 341, or 0.86 percent at Rs 39,207 in a business turnover of 6,548 lots.
Gold price is trading under falling trend line channel, price remains to trade under pressure. Sustaining below Rs 38,900 next leg of correction would drag price lower towards Rs 38,600-38,500 levels in intraday, according to Axis Securities.
On hourly chart, price is trading below 9, 21 and 60 EMA which is negative sign for price.
Kotak Securities said MCX Gold to trade in a range of Rs 38,300-39,800 with bias remains on downside.
MCX Gold has intraday resistance at Rs 39,180-39,460 whereas major resistance is at Rs 39,830 with support placed at Rs 38,230-37,680 levels, said Motilal Oswal. The broking firm advised its clients to sell on rise as bias remains weak.
The brokerage firm said spot gold has support at $1,445-1415 whereas resistance is at $1,505-1,535.
At 13:20 pm (GMT), spot gold was down $29.30 at $1,485.70 an ounce in London trading.
For All Commodities Related News - Click Here
Note: The price of gold had been incorrectly mentioned at Rs 36,535 and it now stands corrected
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
