Gold prices climbed for the sixth consecutive day on October 12, up by Rs 233 to touch Rs 47,335 per 10 gram in the Mumbai bullion market, as the rupee slipped and overseas trends remained positive. The precious metal was also supported by a dollar downtick and fall in Treasury yield.
The price of 10 gram, 22-carat gold in Mumbai was Rs 43,359 plus 3 percent GST, while 24-carat 10 gram stood at Rs 47,335 plus GST. The 18-carat gold is quoted at Rs 35,501 plus GST in the retail market.
The bullion metal remained steady on major platforms as surging inflation and risk aversion sentiments improved appeal for the yellow metal.
Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, remained unchanged at 985.05 tonnes, the lowest level in 2021. The ETF has a market value of $55.5 billion.
The US dollar index was flat at 94.32 against a basket of six rival currencies.
Spot gold advanced by $7.60 to $1,761.78 an ounce at 1200 GMT in London trading.
MCX Bulldek increased by 63 points or 0.45 percent to 14,070 at 17:31. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
“Gold prices continue to trade in a range amidst a mixed US jobs data reported last week and rising noise regarding Fed’s tapering announcement. Today, the focus will be on inflation and IIP data on the domestic front,” said Navneet Damani, VP – Commodities Research at Motilal Oswal Financial Services.
The gold-silver ratio currently stands at 76.79 to 1, which means 76.79 ounces of silver is required to buy an ounce of gold.
Silver prices rose by Rs 148 to Rs 61,638 per kg against its closing price on October 11.
In the futures market, the gold rate touched an intraday high of Rs 47,325 and an intraday low of Rs 47,036 on the Multi-Commodity Exchange (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 surged by Rs 217, or 0.46 percent, at Rs 47,268 per 10 gram in evening trade on a business turnover of 13,457 lots. The same for February gained by Rs 221, or 0.47 percent, to Rs 47,440 on a business turnover of 1,100 lots.
The value of December and February contracts traded so far is Rs 1,399.76 crore and Rs 10.42 crore, respectively.
Similarly, the Gold Mini contract for November rose by Rs 225, or 0.48 percent at Rs 47,166 on a business turnover of 14,478 lots.
Trading Strategy
Sriram Iyer, Senior Research Analyst, Reliance Securities
Technically, LBMA gold above $1,750 will continue its bullish momentum where it holds a resistance near $1,765-1,776 levels. Support is at $1,740-1,727 levels. Technically, MCX Gold December above Rs 47,000 could see a bullish momentum up to Rs 47,300-47,500 levels. Support is at Rs 46,900-46,700 levels.
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