Gold prices rose for the fifth consecutive day by Rs 153 at Rs 38,944 per 10 grams in Mumbai's bullion market on rupee depreciation.
The precious metal has gained Rs 915, or 2.4 percent for the week, and up 22.81 percent in 2019. While silver prices gained Rs 2,345, or 5.33 percent to Rs 46,320 per kilogram in the same period.
The precious metal is trading at a three-month high in the international market and above $1,500 per troy ounce in the last four days.
The rate of 10 grams, 22-carat gold in Mumbai was Rs 35,673 plus 3 percent GST, while that of 10 grams, 24-carat gold was Rs 38,944 plus GST. The price of 18-carat gold quoted at Rs 29,208 plus GST in the retail market.
Silver prices eased by Rs 200 to 46,320 per kg from its closing on December 26.
The gold/silver ratio, which means the amount of silver required to buy one ounce of gold, currently stands at 84.07 to 1.
In the futures market, gold rate touched an intraday high of Rs 38,980 and an intraday low of Rs 38,787 on the 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 27, or 0.07 percent on the MCX, trading at Rs 38,909 per 10 gram in evening trade as a business turnover of 16,575 lots. Gold contracts for April delivery gained Rs 22, or 0.06 percent, at Rs 39,013 per 10 gram in a business turnover of 5,194 lots.
The value of the February contracts traded so far is Rs 2,528.14 crore and that of April contracts saw a value of Rs 153.26 crore.
Similarly, Gold Mini contracts for January was higher by Rs 18, or 0.05 percent at Rs 38,785, in a business turnover of 6,685 lots.
The precious metal is trading under the rising trend line channel, and the price is expected to trade positive. Gold price is trading between Rs 39,000-38,750 since the last two trading sessions. Any break out above Rs 39,000 next leg of positive rally would push price towards Rs 39,200-39,300 levels, according to Axis Securities.
On the hourly chart, the price is trading support of 20 EMA at every fall. The RSI is trading at 61, indicating a bullish momentum in price.
The brokerage firm advised its clients to buy February gold at Rs 38,900 per 10 grams with stop loss at Rs 37,700 and a target of Rs 39,100.
MCX Gold has support at Rs 38,750-38,620, whereas resistance is at Rs 39,150-39,270. Sideways to positive movement is expected for the day, according to Motilal Oswal. The brokerage firm advised its clients to buy on dips, and target a resistance level of Rs 39,150-39,270.
The brokerage firm said that spot gold has its key support at $1,495, whereas resistance remains at $1,525.
At 12:35 pm (GMT) spot gold was marginally up $0.55 at $1,514.95 an ounce in London trading.