Gold prices slipped Rs 41 to Rs 40,583 per 10 grams in Mumbai's bullion market over a stronger dollar and investors' appetite for riskier assets.
The rate of 10 grams, 22-carat gold in Mumbai was Rs 37,174 plus 3 percent GST, while that of 10 grams, 24-carat gold was Rs 40,583 plus GST. The price of 18-carat gold quoted at Rs 30,437 plus GST in the retail market.
According to Navneet Damani, Vice President, Motilal Oswal, gold prices were flat as equities ticked up after China's senior medical adviser suggested the coronavirus epidemic may be over by April with the latest number of new infections falling to the lowest since January 31.
In an effort to calm the market, China’s national health cell has changed the definition of the word “confirmed case”, which will reduce the number the people getting tagged in this category. Market participants will be keeping an eye on the inflation and the IIP numbers expected on the domestic front.
The broader trend on the Comex could be $1,545-1,580, and on the domestic front, prices could hover in the range of Rs 40,150-40,600, said Damani.
The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 88.85 to 1.
Silver prices declined Rs 350 to Rs 45,675 per kg from its closing on February 11.
In the futures market, gold rate touched an intraday high of Rs 40,470 and an intraday low of Rs 40,306 on MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 41,567.
Gold futures for delivery in April slipped Rs 10, or 0.02 percent on the MCX, trading at Rs 40,400 per 10 grams in evening trade for a business turnover of 16,883 lots. Gold contracts for delivery in June eased Rs 23, or 0.06 percent, at Rs 40,555 per 10 grams for a business turnover of 6,020 lots.
The value of the April contracts traded so far is Rs 2,398.24 crore, and that June contracts saw a value of Rs 93.63 crore.
Similarly, Gold Mini contracts for March was down Rs 36, or 0.09 percent, at Rs 40,317 for a business turnover of 8,752 lots.
Axis Securities advised its clients to sell April Gold at Rs 40,430 with stop loss at Rs 40,580, and a target of Rs 40,200.
MCX Gold will be trading in the range for the session with support placed at Rs 40,280-40,170 and resistance at Rs 40,600-40,730, according to Motilal Oswal.
The brokerage firm said spot gold has immediate support at $1,560-1,557 whereas resistance is at $1,575-1,580.
At 13:18 pm (GMT), spot gold was down $2.87 at $1,564.55 an ounce in London trading.