172@29@17@245!~!172@29@0@53!~!|news|business|commodities|gold-prices-rise-marginally-to-touch-rs-51075-per-10-gram-silver-down-by-rs-192-5813681.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to PRO at just Rs.33 per month. Use code SUPERPRO
Last Updated : Sep 08, 2020 06:29 PM IST | Source: Moneycontrol.com

Gold prices rise marginally to touch Rs 51,075 per 10 gram; silver down by Rs 192

In the next couple of sessions, volatility for gold could remain low ahead of the important ECB policy statement that is scheduled for release later this week.

Gold prices rose by Rs 57 to touch Rs 51,075 per 10 gram in the Mumbai market on rupee depreciation and lacklustre global cues. The yellow metal traded under pressure tracking firmness in the dollar index and uncertainty in US-China ties.

The rate of 10 gram 22-carat gold in Mumbai was Rs 46,785 plus 3 percent GST, while 24-carat 10 gram was Rs 51,075 plus GST. The 18-carat gold quoted at Rs 38,306 plus GST in the retail market.

US President Donald Trump raised the prospect of “decoupling” the US economy from China and claimed that America was experiencing “the fastest recovery in US history”.

Close

MCX iCOMDEX Bullion Index fell 114.22 points, or 0.71 percent, at 15,898.20 at 17:28. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Navneet Damani, Vice President, Motilal Oswal, said, “Gold remained steady as the dollar strengthened against its major crosses and volatility for the yellow metal remained low due to US holiday yesterday. In the next couple of sessions volatility for gold could remain low ahead of the important ECB policy statement that is scheduled for release later this Thursday. For today, we expect gold on MCX to quote in the range of Rs 50,450 and Rs 51,300. On COMEX the expected range is $1,900 and $1,950."

Echoing the view, Ravindra Rao, VP- Head Commodity Research at Kotak Securities said: “Gold may witness choppy trade as market players assess the relentless rally in US equity market and the sharp fall in US dollar. However, we expect buying interest to emerge at lower levels as increasing challenges to the global economy may improve its safe-haven appeal.”

The gold/silver ratio currently stands at 78.78 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices declined by Rs 192 to Rs 64,825 per kg from its closing on September 7.

In the futures market, gold rate touched an intraday high of Rs 51,064 and an intraday low of Rs 50,650 on the Multi-Commodity Exchange (MCX). For the October series, the yellow metal touched a low of Rs 45,596 and a high of Rs 56,191.

Gold futures for October delivery slipped Rs 245, or 0.48 percent, at Rs 50,820 per 10 gram in evening trade on a business turnover of 13,351 lots. The same for December fell by Rs 163, or 0.32 percent, at Rs 51,081 on a business turnover of 5,510 lots.

The value of the October and December contracts traded so far is Rs 3,501.11 crore and Rs 138.52 crore, respectively.

Similarly, Gold Mini contract for October decreased Rs 228, or 0.45 percent at Rs 50,921 on a business turnover of 16,604 lots.

Sumeet Bagadia, Executive Director, Choice Broking said: “In the last three trading sessions, MCX Gold (Oct) has been consolidating near its prior swing low. Hence a pullback can be highly evident. On the daily chart, MCX Gold (Oct) has been trading near its “50 percent Fibonacci Retracement Level” which will act as strong support for the near term.

G_Sep8

Additionally, gold is witnessing support near its “Ichimoku Cloud”, which confirms that the uptrend is intact. Also, the price has seen accumulation near its “Horizontal Line Formation” which confirms strength in the counter. Furthermore, momentum indicator Stochastic (6) has shown a positive crossover which suggests positive momentum in the counter. On the upper end, Rs 51,650 levels will act as a strong resistance and on the downside, the counter can witness support at around Rs 50,360 levels.

At 1216 (GMT), spot gold was down $14.10 at $1,914.37 an ounce in London trading.

For all commodities related news,  click here
First Published on Sep 8, 2020 06:29 pm
Sections