Gold prices slip marginally to Rs 49,145 per 10 gram on rupee appreciation

Gold prices declined by Rs 122 to hit Rs 49,145 per 10 gram in the Mumbai bullion market on rupee appreciation. The prices fell as hopes for a potential coronavirus vaccine from Moderna and Oxford University dented safe-haven sentiment. The yellow metal has lost Rs 175, or 0.35 percent, for the week.

The rate of 10 gram 22-carat gold in Mumbai was Rs 45,017 plus 3 percent GST, while 24-carat 10 gram was Rs 49,145 plus GST. The 18-carat gold quoted at Rs 36,859 plus GST in the retail market.

Gold prices saw a steep drop in the previous session, as positive US data and news flow regarding the progress of the vaccine to cure the pandemic lifted optimism in the market. However, surging coronavirus cases and simmering US-China tensions capped losses of the safe-haven asset.

“Markets also kept an eye on China's trade relations with the US as the Trump administration is considering banning travel to the US by all members of the Chinese Communist Party and their families. The ECB, in its policy meet, kept their interest rate unchanged. They said that they will buy 20 billion Euro per month, plus 120 billion Euro this year under asset purchase programme, which will run until interest rates rise,” says Navneet Damani, Vice President, Motilal Oswal.

After neutral weekly jobs data, market participants will keep an eye on the housing number expected from the US. The broader trend on COMEX could be in the range of $1770-1825 and on the domestic front, prices could hover in the range of Rs 48,665-49,185.

“COMEX gold trades marginally higher near $1803/oz. Gold has been trading between $1790-1818 as it is struggling for direction in the last few days. Although it is directionless it is still holding near the key $1800/oz level. Choppiness in US dollar has kept gold in a range. Gold ETF investors are on the sidelines awaiting more clarity on price direction. Gold may witness some positive momentum for the remaining part of the day. However, the broad range of $1790-1818/oz might continue amid mixed factors,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

The gold/silver ratio currently stands at 94.98 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices fell Rs 345 to Rs 51,740 per kg from its closing on July 16.

In the futures market, gold rate touched an intraday high of Rs 48,915 and an intraday low of Rs 48,713 on the Multi-Commodity Exchange (MCX). For the August series, the yellow metal touched a low of Rs 39,200 and a high of Rs 49,348.

Gold futures for August delivery gained Rs 111, or 0.23 percent, at Rs 48,884 per 10 gram in evening trade on a business turnover of 8,374 lots. The same for October delivery was up Rs 90, or 0.18 percent, at Rs 49,020 on a business turnover of 11,349 lots.

The value of the August and October contracts traded so far is Rs 2,617.03 crore and Rs 175.25 crore, respectively.

Similarly, Gold Mini contract for August rose Rs 71, or 0.15 percent at Rs 48,882 on a business turnover of 11,726 lots.

MCX Gold is expected to trade in the sideways market having support at Rs 48,680 whereas resistance is at Rs 48,950 level, according to Motilal Oswal.

At 12:10 (GMT), spot gold was up $9.32 at $1,806.49 an ounce in London trading.

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