Gold prices slipped Rs 301 to Rs 46,799 per 10 gram in the Mumbai bullion market on a stronger rupee and a steady equity market. The precious metal eased on risk-on sentiment as countries lift coronavirus restrictions, reducing its safe-haven appeal.
India’s gold imports for April fell nearly 100 percent to $2.83 million against $3.97 billion in the same period last year as the country locked down, commerce ministry data shows.
The rate of 10 gram 22-carat gold in Mumbai was Rs 42,868 plus 3 percent GST, while 24-carat 10 gram was Rs 46,799 plus GST. The 18-carat gold quoted at Rs 35,099 plus GST in the retail market.
Gold traded steady as equities gained on optimism over partial reopening of global economy but offset support from a softer dollar and lingering tensions over Hong Kong and Venezuela, Navneet Damani, Vice President, Motilal Oswal, said.
The German economy was starting to recover after some restrictions were lifted, a business morale survey showed, boosting European sentiment.
A second Iranian vessel carrying fuel entered Venezuelan waters despite a US warning that Washington was considering a response to the shipment.
Market participants will keep an eye on the US consumer confidence data. Weaker-than-expected numbers could lend support to gold.
The broader trend on Comex could be in the $ 1,720-1,770 range and on the domestic front, prices could hover in the Rs 46,650-47,450 range, Damani said.
Comex gold was trading lower near $1,725 amid improved risk sentiment as was evident from gains in the equity market, Ravindra Rao, VP-Head Commodity Research at Kotak Securities, said.
European markets were up more than 1 percent while DJIA futures were up more than 500 points.
The US dollar index slipped more than 0.5 percent to trade near 99.15 levels. The US currency and gold both have weakened as improved risk sentiment reduced its safe haven appeal.
Gold could get support at lower levels amid weaker economic outlook and increased US-China tensions, said Rao, expecting a range-bound move between $1,700 and 1,734.
The gold/silver ratio stands at 98.26 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices edged up Rs 580 to Rs 47,625 per kg from its closing on May 22.
In the futures market, gold touched an intraday high of Rs 47,150 and an intraday low of Rs 46,612. On the Multi-Commodity Exchange (MCX), the yellow metal for June series touched a low of Rs 36,572 and a high of Rs 47,980.
Gold futures for June delivery declined Rs 205, or 0.44 percent, at Rs 46,768 per 10 gram in the evening trade on a business turnover of 7,061 lots. The same for August delivery lowered by Rs 175, or 0.37 percent, at Rs 46,896 on a business turnover of 12,216 lots.
The value of the June and August contracts traded, so far, is Rs 3,183.02 crore and Rs 841.70 crore, respectively.
Similarly, Gold-Mini contract for June slipped Rs 147, or 0.31 percent, to Rs 46,806 on a business turnover of 7,993 lots.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, expects gold price to trade sideways to down, with MCX June gold getting support at Rs 46,400 and facing resistance at Rs 47,300.
Axis Securities advised clients to sell June Gold at Rs 46,700, with stop loss at Rs 46,850 and a target of Rs 46,500.
Spot gold is expected to trade in the $1,715-1,750 range, Motilal Oswal said.
At 1231 GMT, spot gold was marginally down by $0.38 at $1,728.59 an ounce in London trading.For All Commodities Related News - Click Here