Gold prices fell marginally by Rs 89 to Rs 49,757 per 10 gram in the Mumbai retail market on rupee depreciation, weak global cues and rally in the equity market. The precious metal traded under pressure as investors are awaiting the US presidential election debate and key data from China.
The rate of 10 gram 22-carat gold in Mumbai was Rs 45,577 plus 3 percent GST, while 24-carat 10 gram was Rs 49,757 plus GST. The 18-carat gold quoted at Rs 37,318 plus GST in the retail market.
Bullion metal prices reported the first weekly decline on dollar buying as investors switched to safer avenues compared to precious metals amid rising coronavirus cases in Europe and the UK. The slower US economic growth and rising US-China tension also boosted buying in the dollar against major currencies.
New orders for key US-made capital goods increased more than expected in August, suggesting a rebound in business spending on equipment was underway after a prolonged slump.
Gold holding in SPDR ETF rose to 1,267 tonnes during the week.
MCX iCOMDEX Bullion Index was trading flat at 15,142.64 at 17:30. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Navneet Damani, Vice President, Motilal Oswal said, “Gold prices steadied after being under pressure and hovering around the 2-month lows last week. There is still a lot of uncertainty regarding the US coronavirus relief bill. US House Speaker Nancy Pelosi said that a deal could be reached with the White House on the relief package and that talks were continuing. Also, traders were on the sidelines as political uncertainty built ahead of the first presidential election debate between US President Donald Trump and his Democratic rival Joe Biden is expected tomorrow.”
This week market participants should be cautious ahead of the data-heavy week which could bring in volatility in the market. The broader trend on COMEX could be in the range of $1850- 1875 and on the domestic front, prices could hover in the range of Rs 49,200-49,850.
“COMEX gold trades lower near $1855/oz, a decline of 0.61 percent. Gold remains pressurised even after the US dollar paring some of the gains. Mixed ETF flows are another indicator showing weaker investor interest. Gold may remain sideways to lower unless there are fresh triggers; however if the US dollar comes off the highs then the bulls might get active in the metal”, said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
The gold/silver ratio currently stands at 85.68 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices gained Rs 594 to Rs 58,071 per kg from its closing on September 25.
In the futures market, the gold rate touched an intraday high of Rs 49,640 and an intraday low of Rs 49,252 on the Multi-Commodity Exchange (MCX). For the December series, the yellow metal touched a low of Rs 48,384 and a high of Rs 56,379.
Gold futures for December delivery slipped Rs 76, or 0.15 percent, at Rs 49,574 per 10 gram in evening trade on a business turnover of 14,628 lots. The same for October edged lower Rs 79, or 0.16 percent, at Rs 49,580 on a business turnover of 1,954 lots.
The value of the October and December contracts traded so far is Rs 1,603.43 crore and Rs 2,898.64 crore, respectively.
Similarly, Gold Mini contract for November eased Rs 48, or 0.10 percent at Rs 49,690 on a business turnover of 10,797 lots.
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking Ltd, said, “As for today traders can go for buy in gold at Rs 49,300 levels with the stop loss of Rs 48,900 levels for the target of Rs 50,200 levels.
At 1209 (GMT), Spot gold was marginally up $1.99 at $1,864.39 an ounce in London trading.For all commodities related news, click here