Gold prices slipped Rs 153 to Rs 42,655 per 10 grams in Mumbai's bullion market on profit booking and rupee appreciation. News that the US Centers for Disease Control and Prevention warned American citizens on February 25 that the coronavirus could spread in the country capped the downside.
The World Health Organisation (WHO) Chief Tedros Adhanom Ghebreyesus told diplomats in Switzerland that for the first time the new coronavirus cases reported outside China was more than the new cases reported in China.
The rate of 10 grams, 22-carat gold in Mumbai was Rs 39,072 plus 3 percent GST, while 10 grams, 24-carat was Rs 42,655 plus GST. The price of 18-carat gold quoted at Rs 31,991 plus GST in the retail market.
According to Navneet Damani, Vice President, Motilal Oswal, gold prices continued to witness some profit booking falling by almost 2 percent on the domestic bourses. After hitting the all-time highs on the MCX, investors booked profits and let go of some of the steam from the prices.
Coronavirus concerns in Iran, South Korea and Italy are on the rise lifting the bets for safe havens. The US has also warned its citizens over the domestic spread of the virus which has rattled global markets.
The broader trend on Comex could be $1,610-1,670 and on domestic front prices could hover in the range of Rs 42,150-42,950, said Damani.
The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 90.43 to 1.
Silver prices fell Rs 890 to Rs 47,165 per kg from its closing on February 25.
Also read: Coronavirus scare could send gold prices soaring even more
In the futures market, gold rates touched an intraday high of Rs 42,854 and an intraday low of Rs 42,480 on MCX. For the April series, the yellow metal touched a low of Rs 37,530 and a high of Rs 43,788.
Gold futures for delivery in April slipped Rs 214, or 0.50 percent on the MCX trading at Rs 42,574 per 10 grams in the evening trade for a business turnover of 15,052 lots.
Gold contracts for delivery in June eased Rs 153, or 0.36 percent, at Rs 42,850 per 10 grams in a business turnover of 8,365 lots.
The value of the April contracts traded so far is Rs 4,184.96 crore and that of June contracts saw the value of Rs 160.18 crore.
Similarly, Gold Mini contracts for March was down Rs 187, or 0.44 percent at Rs 42,488 in a business turnover of 4,535 lots.
Axis Securities advised its clients to sell April Gold around Rs 42,800 levels with a stop loss at Rs 42,900 and a target of Rs 42,700.
MCX Gold has support at Rs 42,590-42,370, whereas resistance is at Rs 42,870-42,950, according to Motilal Oswal. The broking firm said that intraday upside will be seen as long as the price holds above the support zone.
The brokerage firm said spot gold has immediate support at $1,638-1,630, whereas resistance is at the $1,656-1,662 range.
At 12:52 pm (GMT), spot gold gained $9.58 at $1,644.66 an ounce in London trading.For All Commodities Related News - Click Here