Gold prices fell marginally by Rs 195 to Rs 51,043 per 10 gram in the Mumbai retail market on a stronger rupee and lacklustre global cues. The precious metal steadied around $1,900 per troy ounce as investors weighed fading prospects of financial aid before next week’s US presidential elections.
The rate of a 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 38,282, Rs 46,755 and Rs 51,043, respectively, plus 3 percent GST.
Markets will now look ahead to cues from consumer confidence and core durable goods orders expected later in the day.
Many European nations are reinforcing lockdown and record high coronavirus cases in the US dented risk appetite and shifted investors towards the safe-haven asset: gold.
US House Speaker Nancy Pelosi continued to hope for a possible deal with President Donald Trump’s administration over the relief fund. She also vowed to continue going after financial aid for the US economy, which was shackled by the pandemic, irrespective of the outcome of the US elections.
Spot gold was trading up $1.58 at $1,903.71 an ounce at 12:22 GMT in London trading.
MCX iCOMDEX Bullion Index inched lower by 18.06 points, or 0.12 percent, to 15,584.65 at 17:54 hours. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
The gold-to-silver ratio currently stands at 82.33 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices rose Rs 285 to Rs 61,991 per kg from its closing on October 26.
In the futures market, the gold rate touched an intraday high of Rs 51,114 and a low of Rs 50,704 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 152, or 0.30 percent, at Rs 50,778 per 10 gram in evening trade on a business turnover of 13,740 lots. The same for February eased Rs 158, or 0.31 percent, to Rs 50,905 on a business turnover of 1,959 lots.
The value of the December and February’s contracts traded so far is Rs 3,297.69 crore and Rs 40.75 crore, respectively.
Similarly, gold mini contract for November edged lower by Rs 120, or 0.24 percent, to Rs 50,833 on a business turnover of 6,221 lots.
Ravindra Rao, VP-Head Commodity Research, Kotak Securities, said supporting gold price is safe-haven buying amid increasing challenges to the global economy amid rising virus cases. "Gold may continue to witness choppy trade as uncertainty relating to US stimulus may keep the dollar directionless.”
The dollar trades with modest losses at 92.89, or down 0.16 percent, against a basket of major currencies.
Navneet Damani, Vice President, Motilal Oswal, expects domestic front prices to hover in the Rs 50,530-50,900 range.
Trading strategySriram Iyer, Senior Research Analyst at Reliance SecuritiesInternational and domestic gold prices had a volatile morning, afternoon and evening session this Tuesday. Gold started higher in the morning session supported by a weaker dollar and concerns stemming from the surging coronavirus spread globally and its economic fallout.
However, by mid-afternoon gave up gains and was last trading flat, tracking the recovery in the US Dollar. The US Dollar rebounded in the mid-afternoon session and kept upside capped.
Technically, LBMA Gold Spot is trading on a flat note where it's struggling near 21-DMA which is placed at $1,900 below which could see downside pressure up to $1,888-$$1,872 levels. However, it could trade in a range of $1,880-$1,909 levels for the rest of the session.
MCX Gold December is expected to trade in a narrow range where it is holding a strong support near Rs 50,700 levels and upside cap is at Rs 51,060 levels where prices are likely to trade within these levels for the rest of the session.
Hareesh V, Head of Commodity Research, Geojit
If the support of $1840 remains undisturbed, we can expect rallies to continue, but it is required to break $1920 to continue major rallies. An unexpected drop below $1820 would extend selling pressure later.
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking
As for today, traders can go for buy in gold at Rs 51,000 levels with the stop loss of Rs 50,700 levels for the target of Rs 51,500 levels.
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