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Last Updated : May 19, 2020 10:57 PM IST | Source: Moneycontrol.com

Gold slips Rs 1,032 per 10 gram, silver down Rs 1,320 per kg

The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 35,122, Rs 42,895 and Rs 46,829, respectively, plus 3 percent GST.


Gold prices slipped Rs 1,032 to Rs 46,829 per 10 gram in the Mumbai bullion market on the back of a stronger dollar-rupee.

The yellow metal was under pressure after drug maker Moderna reported promising results of its experimental novel coronavirus, or COVID-19, vaccine in an early-stage trials. This development prompted investors to book profits in gold, which has already risen by over 17 percent in 2020 till date (December 2019 close to high of 2020).

On May 19, gold continued to trade higher in early trade supported by strained US-China relations and a dismal global economic outlook, although ease off in restrictions in many countries spurred some risk appetite and capped the metal's gains.

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Reports suggest that stock exchange Nasdaq is set to unveil new restrictions on initial public offerings, which will make it more difficult for some Chinese companies to debut on it.

Market participants will keep an eye on the unemployment data from UK and few housing numbers expected from the US.

ETF investors moved to sidelines amid increased price volatility. Gold holdings with SPDR ETF remained unchanged at 1113.78 tonne, the highest since April 2013.

The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 35,122, Rs 42,895 and Rs 46,829, respectively, plus 3 percent GST.

Navneet Damani, Vice President, Motilal Oswal, expects domestic prices to hover in the range of Rs 46,470-47,100/10 gram.

Ravindra Rao, VP-Head Commodity Research at Kotak Securities, too sees buying remerge at lower levels due to weaker global economic outlook and hopes of additional stimulus measures.

The gold/silver ratio currently stands at 100.06 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices fell Rs 1,320 to Rs 46,800 per kg from its closing on May 18.

In the futures market, gold rate touched an intraday high of Rs 46,920 and an intraday low of Rs 46,481 on the Multi-Commodity Exchange (MCX). For the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 47,980.

Gold futures for June delivery gained Rs 38, or 0.08 percent, at Rs 46,693 per 10 gram in evening trade on a business turnover of 11,584 lots. The same for August delivery was up Rs 19, or 0.04 percent, at Rs 46,931 on a business turnover of 9,711 lots.

The value of the June and August contracts traded so far is Rs 2,752.36 crore and Rs 485.24 crore, respectively.

Similarly, Gold Mini contract for June rose Rs 9, or 0.02 percent at Rs 46,661 on a business turnover of 9,546 lots.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities, sees support for MCX June Gold futures at Rs 46,300 and resistance at Rs 46,900 levels. Motilal Oswal too sees support at Rs 46,400 and resistance at Rs 47,000 levels.

At 12:30 pm (GMT), spot gold was up by $1.43 at $1,733.99 an ounce in London trading.

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First Published on May 19, 2020 06:44 pm
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