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Last Updated : Oct 16, 2020 07:09 PM IST | Source: Moneycontrol.com

Gold prices rise Rs 242 to Rs 50,905/10 gm, silver up Rs 1,399/kg

Silver prices jumped Rs 1,399 to Rs 61,558 per kg from its closing on October 15.


Gold prices rose by Rs 242 to Rs 50,905 per 10 gram in the Mumbai retail market on a weaker dollar and lacklustre global cues. The precious metal is up Rs 27, or 0.05 percent, this week.

The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 38,179, Rs 46,629 and Rs 50,905, respectively, plus 3 percent GST. 

The dollar trades down 0.26 percent to 93.61, after hitting a one-week high against major currencies.

Close

The bullion metal has witnessed directionless trade in the last few sessions, but continues to hold within the broad range of $1,880-1,930/oz and may not see a break out unless there is more clarity on US stimulus, Brexit and COVID situation.

The number of Americans filing new claims for jobless benefits rose last week to a two-month high by 53,000 to a seasonally adjusted 898,000 for the week-ended October 10.

Spot gold was trading marginally higher by $1.65 at $1,910.34 an ounce at 12:10 GMT in London trading.

Gold holdings in SPDR ETF fell 1.9 tonne to 1276.61 tonne. 

MCX iCOMDEX Bullion Index was up 25.36 points, or 0.16 percent, at 15,555.18 at 17:42 hours. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Navneet Damani, Vice President, Motilal Oswal, said, the broader trend on COMEX could be in the range of $1,895-1,925 per troy ounce. "On the domestic front, prices could hover in the range of Rs 50,400-51,000."

“Gold may continue in the $1,880-1,930/oz unless there is more clarity on US stimulus, but general bias may be on the upside on increasing challenges to the global economy,” said Ravindra Rao, VP-Head Commodity Research at Kotak Securities.

The gold-to-silver ratio currently stands at 82.69 to 1, which means the amount of silver required to buy one ounce of gold. 

Silver prices jumped Rs 1,399 to Rs 61,558 per kg from its closing on October 15.

In the futures market, the gold rate touched an intraday high of Rs 50,811 and a low of Rs 50,562 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 gained Rs 20, or 0.04 percent, at Rs 50,732 per 10 gram in evening trade on a business turnover of 14,756 lots. The same for February surged Rs 49, or 0.10 percent, at Rs 50,810 on a business turnover of 1,145 lots.

The value of the December and February’s contracts traded so far is Rs 2,288.94 crore and Rs 10.67 crore, respectively.

Similarly, Gold Mini contract for November edged higher Rs 57, or 0.11 percent at Rs 50,832 on a business turnover of 9,182 lots.

Trading strategy

Tapan Patel- Senior Analyst (Commodities), HDFC Securities:

Gold prices extended gains despite dollar recovery on fears of fresh lockdown measures in Europe and the UK over a surge in COVID-19 infections. Prices are expected to trade in the current range for the day with markets awaiting progress over US stimulus talks.

We expect gold prices to trade sideways to up for the day with resistance and support for COMEX gold at $1,930 and $1,890/oz, respectively. MCX Gold October support lies at Rs 50,400 with resistance at Rs 51,000

Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking

As for today, traders can go for buy in gold at Rs 50,500 levels with the stop loss of Rs 50,250 levels for the target of Rs 51,200 levels.

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Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Oct 16, 2020 07:09 pm
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