Navneet Damani, Vice President, Motilal Oswal, sees domestic prices hovering in the range of Rs 51,060-51,950 per 10 gram
Gold prices rose by Rs 109 to Rs 51,620 per 10 gram in the Mumbai market on positive global cues and weakness in the dollar, but the gains were capped by a stronger rupee. The precious metal was trading in a narrow trading range as traders and investors are awaiting fresh triggers post the US Federal Reserve meet.
The yellow metal has gained Rs 179, or 0.35 percent, this week.
The rate of the 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 38,715, Rs 47,284 and Rs 51,620, respectively, plus 3 percent GST.
The US Labour Department reported that the number of Americans claiming unemployment benefits were nearly 30 million at the end of August.
Gold holding in SPDR ETF fell 0.58 tonne to 1,246.98 tonne, the lowest since July 31.
On the geopolitical front, Taiwan scrambled fighter jets as tension with China rose after 18 Chinese aircraft buzzed the island, including crossing the sensitive mid-line of the Taiwan Strait. This escalation in tensions may cause the US to respond, further worsening Sino-US relations.
MCX iCOMDEX Bullion Index increased 11.72 points, or 0.07 percent, to 16,108.45 at 17:27. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
“Gold may remain choppy amid lack of clear cues and mixed trade in equities and the dollar. However, buying might emerge at lower levels amid global uncertainty and loose monetary policy stance of major central banks,” Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said.
Navneet Damani, Vice President, Motilal Oswal, sees domestic prices hovering in the range of Rs 51,060-51,950 per 10 gram. “The broader trend on COMEX could be in the $1,918-1,978 per troy ounce range.”
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, expects international gold prices to trade sideways to up with support at $1,910 and resistance at $1,970. He sees support and resistance for MCX October Gold futures at Rs 51,100 and Rs 51,900, respectively.
The gold-to-silver ratio currently stands at 78.32 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices climbed Rs 687 to Rs 65,905 per kg from its closing on September 17.
In the futures market, gold touched an intraday high of Rs 51,653 and a low of Rs 51,453 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 gained Rs 127, or 0.25 percent, at Rs 51,580 per 10 gram in evening trade on a business turnover of 9,058 lots. The same for December rose Rs 129, or 0.25 percent, at Rs 51,755 on a business turnover of 9,207 lots.
The value of the October and December’ contracts traded so far is Rs 2,476.59 crore and Rs 513.66 crore, respectively.
Similarly, Gold Mini contract for October edged higher Rs 143, or 0.28 percent, at Rs 51,641 on a business turnover of 14,378 lots.
At 1205 (GMT), spot gold was up $7.63 at $1,951.56 an ounce in London trade.For all commodities related news, click here