172@29@17@136!~!172@29@0@53!~!|news|business|commodities|gold-prices-steady-at-rs-50663-per-10-gram-silver-declines-by-rs-571-per-kg-5968721.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
FREE virtual training session on Passive Income Secrets: October 24 and 25, 2020, 10am to 1pm. Register Now!
Last Updated : Oct 15, 2020 06:29 PM IST | Source: Moneycontrol.com

Gold prices steady at Rs 50,663 per 10 gram, silver declines by Rs 571 per kg

The gold/silver ratio currently stands at 84.21 to 1, which means the amount of silver required to buy one ounce of gold.

Gold prices were steady at Rs 50,663 per 10 gram in the Mumbai retail market on a weaker rupee and subdued global cues. The precious metal continues to trade lower on a firm dollar and doubts over US fiscal stimulus before November 3 election.

The rate of 10 gram 22-carat gold in Mumbai was Rs 46,407 plus 3 percent GST, while 24-carat 10 gram was Rs 50,663 plus GST. The 18-carat gold quoted at Rs 37,997 plus GST in the retail market.

The US dollar index trades firm at 93.73, trading at day’s high as weaker risk sentiment increased its safe-haven appeal.

Close

British Health Secretary Matt Hancock shifted London into the second-highest coronavirus alert category amid surging cases in the global financial capital and urgent steps needed to control the virus and save lives.

According to John Hopkins data, global COVID-19 cases have surpassed 38.5 million while the death toll has risen above 1.09 million.

Spot gold was trading lower $8.74 at $1,892.92 an ounce at 1207 GMT in London trading.

Gold holdings in SPDR ETF rose 0.3 ton to 1277.93 tonnes. 

MCX iCOMDEX Bullion Index inched lower 115.44 points, or 0.75 percent, at 15,378.13 at 17:40. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Navneet Damani, Vice President, Motilal Oswal said, “Gold price continues to trade in a narrow range hovering near the $1900 levels amidst a steady dollar, fading chances of a new US fiscal stimulus package being finalised before the November elections. US Treasury Secretary Steve Mnuchin said he and House of Representatives Speaker Nancy Pelosi were 'far apart' on another coronavirus economic relief package, which is not good news for gold prices.” 

Market participants will keep an eye on the weekly jobless claims data which, if better than expected,  could support the metal at lower levels. The broader trend on COMEX could be in the range of $1,880-1,910 and on the domestic front prices could hover in the range of Rs 50,100-50,700.

“COMEX gold trades lower near $1898/oz weighed down by a stable US dollar and uncertainty about US stimulus. Gold may remain directionless until there is clarity about US stimulus but we expect buying interest to emerge at lower levels as uncertainty about the US economy may keep pressure on the US dollar,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

The gold/silver ratio currently stands at 84.21 to 1, which means the amount of silver required to buy one ounce of gold. 

Silver prices dropped by Rs 571 to Rs 60,159 per kg from its closing on October 14.

Also read: Silver futures plunge over 2% to Rs 60,278 per kg, more downside likely

In the futures market, the gold rate touched an intraday high of Rs 50,542 and an intraday low of Rs 50,280 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 192, or 0.38 percent, at Rs 50,350 per 10 gram in evening trade on a business turnover of 14,866 lots. The same for February fell Rs 74, or 0.15 percent, at Rs 50,550 on a business turnover of 1,103 lots.

The value of the December and February contracts traded so far is Rs 2,933.70 crore and Rs 28.29 crore, respectively.

Similarly, Gold Mini contract for November edged lower by Rs 224, or 0.44 percent at Rs 50,390 on a business turnover of 9,208 lots.

Trading strategy

Sriram Iyer, Senior Research Analyst at Reliance Securities

International Gold and silver prices were down on Thursday evening in Asia as the dollar gained strength. The impasse over US COVID-19 stimulus talks and a rapid rise in new coronavirus cases in Europe are keeping the greenback in a bullish mode. The likely extension of the Brexit trade deal discussions also pushed bullion lower.

Technically, LBMA Gold Spot is trading near 21 Daily Moving Average where it is trading below the upper band of Falling Channel formation. Therefore, below $1,902 will continue to see downside pressure $1,874-$1,867 levels where upside resistance is at $1,905-$1,912 levels.

Domestic bullion prices were trading lower in Asia tracking weak overseas prices. Technically, MCX Gold December contract has halted downside move near 100-day moving average which is placed at Rs 50,399 levels where below this level could see a bearish move up to Rs 50,150-49,900 levels. However, once bounced back above Rs 50,400, we could see upside push up to Rs 50,700 levels.

Tapan Patel- Senior Analyst (Commodities), HDFC Securities

Gold prices traded under pressure on the stronger dollar as investors switched to the dollar as safe-haven buying. Bullion prices are awaiting fresh triggers as prices are trading in the range of $1880-$1920 on dollar fluctuations over US stimulus worries and concerns over a surge in virus cases.

We expect gold prices to trade sideways to down for the day with COMEX gold resistance at $1920, and support at $1880. MCX Gold October support lies at Rs 50,000 with resistance at Rs 50,600.

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

As for today, traders can go for sell in gold at Rs 50,600 levels with the stop loss of Rs 51,100 levels for the target of Rs 49,500 levels. They can also go for sell in Silver at Rs 61,200 levels, with the stop loss of Rs 61,700 levels and target of Rs 59,800 levels.

For all commodities-related news,  click here

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 15, 2020 06:29 pm
Sections