Gold prices remained unchanged at Rs 50,840 per 10 gram in the Mumbai retail market after a decline of three days on sluggish global cues as markets remain cautious ahead of the US presidential election. The precious metal was trading with marginal gain as the dollar gave up gains pushing safe-haven inflows to bullion.
The rate of a 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 38,130, Rs 46,569 and Rs 50,840, respectively, plus 3 percent GST.
The bullion metal declined Rs 383, or 0.75 percent during the week.
The US dollar trades lower at 93.84 or down 0.15 percent in the evening session.
The US economy grew at a historic pace in the third quarter as the government injected more than $3 trillion worth of pandemic relief which fuelled consumer spending, although impact of other uncertainties and rising COVID numbers continue to hover over the economy.
Festival demand and uncertainty on election may support the gold prices. An increase in cases of coronavirus may boost safe-haven demand for gold.
Spot gold was trading marginally higher $10.76 at $1,878.62 an ounce at 1205 GMT in London trading.
Gold holdings in SPDR ETF remained unchanged at 1258.25 tonnes.
MCX iCOMDEX Bullion Index climbed 131.63 points, or 0.86 percent, at 15,481.26 at 17:35. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Navneet Damani, Vice-President, Motilal Oswal said, “Gold prices lingered near the one-month low hit in the previous session, as the dollar strengthened and hopes of an immediate US coronavirus aid package faded. Comments by the head of Congress and White House signalled a tough road ahead for a COVID-19 stimulus even after next week’s US election, hence maintaining the pressure on the metal.”
The broader trend on COMEX could be in the range of $1860- 1890 and on domestic front prices could hover in the range of Rs 50,250-50,650.
“COMEX gold trades 0.26 percent higher near $1873/oz as the US dollar index stalled after testing near 1-month high and on expectations of additional measures by ECB. Gold may remain choppy as market players remain cautious ahead of US elections. Technically COMEX gold trading range would be $1885 to $1860 with US dollar remaining the main focus,” said Ravindra Rao, VP-Head Commodity Research, Kotak Securities.
The gold/silver ratio currently stands at 84.83 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices declined by Rs 1,504 to Rs 59,926 per kg from its closing on October 29.
In the futures market, the gold rate touched an intraday high of Rs 50,680 and an intraday low of Rs 50,353 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 gained Rs 370, or 0.74 percent, at Rs 50,652 per 10 gram in evening trade on a business turnover of 13,753 lots. The same for February jumped Rs 381, or 0.76 percent, at Rs 50,745 on a business turnover of 2,505 lots.
The value of the December and February contracts traded so far is Rs 2,425.63 crore and Rs 83.02 crore, respectively.
Similarly, Gold Mini contract for December edged higher by Rs 341, or 0.68 percent at Rs 50,714 on a business turnover of 10,785 lots.
MCX Gold price has dropped after breaking trend line support, price is expected to trade negatively. Price is forming resistance near Rs 50,600 level and any breakdown below Rs 50,400 would drag down price lower towards Rs 50,100-50,000 levels in intraday, said Axis Securities.
On the hourly chart, the price is trading below 60 EMA which is a bearish sign for prices.
Sriram Iyer, Senior Research Analyst at Reliance Securities
Technically, LBMA Gold Spot is trading above $1,860 levels also it holds a strong support zone near $1,848-$1,857 levels from where a bounce back move can be expected. However, it has given a breakdown of Rising Channel formation and is trading below 100-DMA at $1,889 levels indicating sideways momentum in the coming session. Support is at $1,859-$1,848 levels and Resistance is at $1,877-$1,885 levels.
Domestic gold surged higher this Friday afternoon trade tracking overseas prices and weak rupee. Technically, MCX Gold December is trading below 21-DMA which is placed at Rs 50,650 levels above which could see some upside push up to Rs 50,800 levels. However, below 50300 could take prices again near Rs 50,100-49,900 levels.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
Gold prices traded firm with COMEX spot gold prices recovered to $1,873 on Friday. Gold December future contract at MCX were trading half a percent up to Rs 50528 per 10 grams for the day.
Gold prices are fluctuating on mixed global cues with delaying US stimulus and worries over surge in virus cases. Gold prices are expected to trade in the current range with sideways to up move for the day limiting downside on weaker dollar.
COMEX gold resistance at $1890, support at $1860. MCX Gold December support lies at Rs 50,100 with resistance at Rs 50,800.
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