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Last Updated : Dec 09, 2019 07:31 PM IST | Source: Moneycontrol.com

Gold slips Rs 376 to Rs 37,799 per 10 gram, silver down 2.01%

The value of the February contract traded so far is Rs 1,636.44 crore and April contract saw the value of Rs 117.07 crore.

Gold prices fell Rs 376 to Rs 37,799 per 10 gram on December 9 in the Mumbai bullion market following China's move to waive off import tariffs on certain US goods and on the back of better-than-expected US jobs numbers which weighed down on precious metals.

The rate of 10 grams 22-carat gold in Mumbai was Rs 34,624 plus 3 percent GST, while 24-carat 10 gram was Rs 37,799 plus GST. Meanwhile, 18-carat gold quoted at Rs 28,349 plus GST in the retail market.

Silver prices also dipped Rs 890, falling to Rs 43,225 per kg from its closing price on December 6.

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The gold to silver ratio currently stands at 87.44 to 1, which denotes the amount of silver required to buy an ounce of gold.

Gold has broken down from a head and shoulder pattern, suggesting that prices may head lower. A sustained fall below Rs 37,580 would kickstart the next leg of correction which could drag gold towards Rs 37,400 to Rs 37,300, according to Axis Securities.

On the hourly chart, 60EMA has shown a negative crossover of 20EMA, which is a bearish sign for the precious metal. The broking firm advised its clients to sell February gold at Rs 37,580 per 10 gram with stoploss at Rs 37,680 and target of Rs 37,440.

In the futures market, gold prices touched an intraday high of Rs 37,698 and an intraday low of Rs 37,575 on MCX. For the February series, the yellow metal touched a low of Rs 36,098 and a high of Rs 40,806.

Gold futures for delivery in February slipped Rs 19, or 0.05 percent, on the MCX trading at Rs 37,680 per 10 gram in the evening trade in a business turnover of 16,691 lots. Gold contracts for April delivery gained Rs 19, or 0.05 percent, at Rs 37,735 per 10 gram in a business turnover of 2,131 lots.

The value of the February contract traded so far is Rs 1,636.44 crore and April contract saw the value of Rs 117.07 crore.

Similarly, Gold Mini contract for January was down Rs 23, or 0.06 percent at Rs 37,725 in a business turnover of 7,934 lots.

MCX Gold has support at Rs 37,450-37,300 whereas resistance is at Rs 37,780 to Rs 37,940. Sideways to negative movement is expected for the day, according to Motilal Oswal. The brokerage firm advised its client to sell on rise targeting support level of Rs 37,450-37,300.

The brokerage firm said spot gold has a key support at $1,450 whereas resistance remains at $1,480.

At 12:38 pm (GMT) spot gold was trading marginally up $3.35 at $1,468.45 an ounce in London trading.

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First Published on Dec 9, 2019 06:39 pm
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