Gold prices fell marginally by 47 to Rs 50,976 per 10 gram in the Mumbai retail market tracking weak global cues despite a weaker dollar. The precious metal continues to trade in a narrow range amidst the caution set in ahead of the deadline to reach an agreement on a new US coronavirus, diminishing the metal’s appeal.
The rate of 10 gram 22-carat gold in Mumbai was Rs 46,694 plus 3 percent GST, while 24-carat 10 gram was Rs 50,976 plus GST. The 18-carat gold quoted at Rs 38,232 plus GST in the retail market.
Speeches of US Fed officials are lined up this entire week where they talk about their view and growth of the US economy, thereby impacting precious metal prices. On the other hand, some support was found when ECB Governor mentioned that she will continue to maintain an accommodative stance in response to COVID-19 crisis.
The US dollar trades lower at 93.27 or down 0.17 percent following a 0.3 percent decline yesterday.
Spot gold was trading marginally lower $3.52 at $1,900.62 an ounce at 1224 GMT in London trading.
Gold holdings in SPDR ETF rose 0.3 tonnes to 1272.85 tonnes.
MCX iCOMDEX Bullion Index was up 8.44 points, or 0.05 percent, at 15,564.64 at 17:54. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Navneet Damani, Vice President, Motilal Oswal said, “Market participants will keep an eye on the housing numbers expected to release from the US today later in the evening. The broader trend on COMEX could be in the range of $1885- 1920 and on domestic front prices could hover in the range of Rs 50,350-50,800.”
“COMEX gold trades 0.3 percent lower near $1905/oz as US dollar index stabilized after yesterday’s fall. Although uncertainty about US stimulus is pressurizing gold prices ETF inflows and safe-haven buying amid rising virus cases and uneven economic recovery is supporting the bull case. For the day Gold may remain choppy reflecting volatility in US dollar and equity market at large”, said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
The gold/silver ratio currently stands at 82.69 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices dropped Rs 362 to Rs 62,178 per kg from its closing on October 19.
In the futures market, the gold rate touched an intraday high of Rs 50,750 and an intraday low of Rs 50,491 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 46, or 0.09 percent, at Rs 50,641 per 10 gram in evening trade on a business turnover of 14,286 lots. The same for February gained Rs 16, or 0.03 percent, at Rs 50,760 on a business turnover of 1,403 lots.
The value of the December and February’s contracts traded so far is Rs 2,874.08 crore and Rs 36.96 crore, respectively.
Similarly, Gold Mini contract for November edged lower Rs 71, or 0.14 percent at Rs 50,680 on a business turnover of 9,159 lots.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
Gold prices traded down with COMEX spot gold prices traded near $1901 on Tuesday. Gold October future contract at MCX was trading down to Rs 50,593 per 10 grams for the day limiting downside on rupee depreciation.
Gold prices traded under pressure over the hope of US stimulus package after US House of Representatives Speaker Nancy Pelosi set the Tuesday deadline. Gold prices have held grounds kept downside limited on slower US economic recovery and concerns of fresh lockdown measures in the UK and Europe.
We expect gold prices to trade sideways to up for the day with COMEX gold resistance at $1910, support at $1890. MCX Gold October support lies at Rs 50,300 with resistance at Rs 50,800.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International bullion prices are trading flat this Tuesday evening trade in Asia as caution is set in ahead of the deadline to reach an agreement on a new US coronavirus stimulus. Markets could continue to remain range ahead of the deadline.
Technically, LBMA Gold Spot is trading near $1,900 levels where it’s also sustaining above 21-Daily Moving Average at $1894 indicating some upside push up to $1,913-$1,924 levels. However, below $1,900 could see downside move up to $1,895-$1,887 levels in coming sessions.
Domestic bullion prices are trading flat this Tuesday afternoon trade, tracking international prices. Technically, MCX Gold December contract is trading below 50700 levels where immediate support holds at Rs 50,470 levels below which could see bearish momentum up to Rs 50,200-49,900 levels Gold could trade in a range of Rs 50,300-50,700 levels.
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