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Gold rises for 4th day at Rs 38,791 per 10 grams, silver gains Rs 890 to Rs 46,520 per kg

In the futures market, gold rates touched an intraday high of Rs 38,823 and an intraday low of Rs 38,635 on MCX.

December 26, 2019 / 07:33 PM IST

Gold prices rose for the fourth consecutive day by Rs 346 at Rs 38,791 per 10 gram in the Mumbai bullion market on the back of a weaker rupee and positive overseas cues as investors await details of the trade deal between US and China.

The precious metal is trading at a two-month high in the international market above $1,500 per troy ounce since December 24.

The rate of 10 gram 22-carat gold in Mumbai was Rs 35,533 plus 3 percent GST, while 24-carat 10 gram was priced Rs 38,791 plus GST. The 18-carat gold quoted at Rs 29,093 plus GST in the retail market.

Silver prices gained Rs 890 to 46,520 per kg from its closing on December 24.

The gold/silver ratio currently stands at 83.38 to 1, which means the amount of silver required to buy one ounce of gold.

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In the futures market, gold touched an intraday high of Rs 38,823 and an intraday low of Rs 38,635 on MCX. For the February series, the yellow metal touched a low of Rs 36,098 and a high of Rs 40,806.

Gold futures for delivery in February rose Rs 125, or 0.32 percent on the MCX trading at Rs 38,764 per 10 gram in evening trade in a business turnover of 16,435 lots. Gold contracts for April delivery gained Rs 172, or 0.44 percent, at Rs 38,860 per 10 gram in a business turnover of 4,817 lots.

The value of the February contract traded so far is Rs 2,828.83 crore and the April contract saw a value of Rs 252.40 crore.

Similarly, Gold Mini contract for January was higher by Rs 74, or 0.19 percent at Rs 38,698 in a business turnover of 9,022 lots.

The precious metal is trading under a rising trend line, and going ahead, it is expected to trade positive. Gold caught up bullish momentum since it has broken strong resistance level of Rs 38,300. Sustaining above Rs 38,730 would push prices higher towards Rs 38,900-39,000 levels, according to Axis Securities.

On the hourly chart, gold is trading above 9, 21 and 60 EMA which is a positive sign.

The brokerage firm advised its clients to buy February gold at Rs 38,730 per 10 gram with stop loss at Rs 37,600 and target of Rs 38,900.

Also Read | Gold reclaims $1,500 level on recession fears

MCX Gold has support at Rs 38,600-38,550 whereas resistance is at Rs 38,900-39,100. Sideways to positive movement is expected for the day, according to Motilal Oswal. The brokerage firm advised its clients to buy on dip targeting resistance level of Rs 38,900-39,100.

The brokerage firm said spot gold has key support at $1,485 whereas resistance remains at $1,520.

At 13:20 pm (GMT) spot gold was up $5.85 at $1,510.45 an ounce in London trading.
Moneycontrol News
first published: Dec 26, 2019 07:33 pm

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