Gold prices steady at 52,009 per 10 gm, silver prices fall by Rs 872 to Rs 65,502 per kg

The rate of 10 gram 22-carat gold in Mumbai was Rs 47,640 plus 3 percent GST, while 24-carat 10 gram was Rs 52,009 plus GST

Gold prices were steady at 52,009 per 10 gram in the Mumbai market on rupee appreciation and rally in the equity markets on improved risk appetite. The yellow metal is trading sideways to lower amid a decline in safe-haven demand.

The rate of 10 gram 22-carat gold in Mumbai was Rs 47,640 plus 3 percent GST, while 24-carat 10 gram was Rs 52,009 plus GST. The 18-carat gold quoted at Rs 39,007 plus GST in the retail market.

According to the CFTC Commitments of Traders report for the week ended August 18, Gold Futures’ net long positions slipped by 535 contracts, to 223,518. Speculative long positions declined by 4,498 contracts, while shorts fell by 3,963.

The stalled talks between the European Union and the UK over BREXIT negotiations added risk premium in gold prices.

“Gold prices dip as the dollar steadied near a more than one-week high, while investors will keep an eye on the Fed Chairman Jerome Powell's speech at Jackson Hole later this week for clarity on the direction of US monetary policy. Market participants have also been keeping an eye on the new coronavirus relief bill that has been getting delayed from start of this month, and it is still in the negotiation phase, Democrats and Republicans blamed each other for stalled talks on coronavirus aid legislation last weekend," Navneet Damani, vice-president, Motilal Oswal.

Market participants should consider a cautious approach moving ahead in this week after a dip witnessed in the past few sessions. The broader trend on COMEX could be in the range of $1915- 1955 and on domestic front prices could hover in the range of Rs 51,500-52,200.

“COMEX gold trades moderately higher near $1955/oz up by 0.44 percent. Gold has witnessed a consolidative move in last few sessions amid choppy US Dollar. Lack of ETF buying has also kept gold rang bound. In the domestic market MCX Gold active contract is trading 0.50 percent lower compared to previous close amid sharp appreciation in the Indian Rupee against the US Dollar. The Indian Rupee has appreciated by more than 1 percent against the US Dollar as of this writing. Although sharp correction seen earlier this week has dented market sentiment for the yellow metal, buying might re-emerge at lower levels amid persisting virus risks and increased US-China tensions," Ravindra Rao, VP-head, commodity research at Kotak Securities.

The gold/silver ratio currently stands at 79.40 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices fell Rs 872 to Rs 65,502 per kg from its closing on August 21.

In the futures market, gold prices touched an intraday high of Rs 52,232 and an intraday low of Rs 51,630 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 67, or 0.13 percent, at Rs 51,949 per 10 gram in evening trade on a business turnover of 15,359 lots. The same for December delivery dipped Rs 32, or 0.06 percent, at Rs 52,173 on a business turnover of 3,029 lots.

The value of the October and December contracts traded so far is Rs 3,450.15 crore and Rs 96.30 crore, respectively.

Similarly, Gold Mini contract for September eased Rs 41, or 0.08 percent, at Rs 52,004 on a business turnover of 13,178 lots.

Gold prices are likely to remain firm, and a key support level is seen around the 50-days EMA at $1,903, and the 100-days EMA at $1,824; meanwhile an immediate resistance could be seen around $1,980-$2,037 levels, said Abhishek Bansal, founder chairman, Abans Group.

At 1216 (GMT), spot gold was up $17.91 at $1,958.62 an ounce in London trading.

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