Gold prices dropped by Rs 298 to Rs 47,538 for 10 grams in the Mumbai bullion market on a strong rupee and subdued global trend. The yellow metal mildly fell as investors await the outcome of the FOMC meeting and US payroll data later in the day for fresh triggers.
The price of 10 gram 22-carat gold in Mumbai was Rs 43,545 plus 3 percent GST, while 24-carat 10 gram stood at Rs 47,538 plus GST. The price of 18-carat gold was quoted at Rs 35,654 plus GST in the retail market.
“We are witnessing a renewed excitement among retail customers along with an exponential rise in customer footfalls across our stores in the last 2 days and we are expecting a 30-40 percent rise in sales volumes till Diwali compared to last year. With the upcoming wedding season, we expect retail demand for gold and other gems and jewellery products to traverse a high-growth trajectory,” Ahammed MP, Chairman, Malabar Gold & Diamonds.
A cautious approach is advised for the day, as along with the Fed policy meeting, investors will keep an eye on Service PMI data from major economies and US private payroll data.
US Federal Reserve is expected to give an updated economic outlook and may hint at the timeline of an interest rate hike.
Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund remained unchanged at 979.52 tonnes. The ETF has a market value of $56.36 billion.
The dollar index marginally dipped to 93.99, down 0.09 percent against a basket of six rival currencies.
Spot gold slightly eased by $2.95 at $1,784.85 ounce at 1215 GMT in London trading.
MCX Bulldek fell by 21 points or 0.15 percent to 14,208 at 5.46 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
The gold-silver ratio stands at 75.24 to 1, which means 75.24 ounces of silver is required to buy an ounce of gold.
Silver prices tanked by Rs 1,033 to Rs 63,175 a kg against its closing price on November 2.
In the futures market, the gold price touched an intraday high of Rs 47,584 and an intraday low of Rs 47,315 on MCX. For the December series, the yellow metal touched a low of Rs 45,705 and a high of Rs 48,899.
Gold futures for December delivery slides Rs 213, or 0.45 percent, at Rs 47,409 in the evening trade on a business turnover of 8,123 lots. The same for February dropped by Rs 189, or 0.40 percent, to Rs 47,561 on a business turnover of 5,196 lots.
The value of December and February contracts traded is Rs 1,652.87 crore and Rs 213.49 crore, respectively.
The Gold Mini contract for December slipped by Rs 233, or 0.49 percent, at Rs 47,423 on a business turnover of 17,815 lots.
Trading Strategy
Sriram Iyer, Senior Research Analyst at Reliance Securities
Technically, if COMEX Gold December trades below $1791.53 levels, it could witness a downside momentum up to the support zones at $1774.87-$1770.73 levels. Resistance zones are at $1806.07-$1812.33 levels.
Technically, if MCX Gold December trades below Rs 47,700 it could test the support zones at Rs 47,516-47,409 levels. Resistance zones is Rs 47,807-47,991 levels.
Motilal Oswal
MCX Gold is likely to trade with negative bias for the session with support placed at Rs 47,100-46,900 whereas resistance is at Rs 47,600-47,800 levels.
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