Gold prices fell for the fifth consecutive day on March 2, hitting Rs 42,326 per 10 gram in the Mumbai bullion market.
The yellow metal fell sharply on February 28 as investors were forced to liquidate their precious metal positions to meet margin calls to cover losses in the stock market.
The rate of 10 grams 22-carat gold in Mumbai was Rs 38,771 plus 3 percent GST, while 24-carat 10 gram was Rs 42,326 plus GST. The 18-carat gold quoted at Rs 31,745 plus GST in the retail market.
According to Navneet Damani, Vice President, Motilal Oswal, worries over coronavirus has forced investors to look for safe-havens.
The broader trend on Comex is at $1,580-1,625 and on domestic front, prices may hover in the range of Rs 41,450-Rs 42,250, said Damani.
The gold/silver ratio currently stands at 93.89 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices fell Rs 435 to Rs 45,080 per kg from its closing on February 28.
In the futures market, gold rate touched an intraday high of Rs 42,343 and an intraday low of Rs 41,646 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 rose Rs 758, or 1.83 percent on the MCX trading at Rs 42,155 per 10 gram in evening trade in a business turnover of 13,815 lots. Gold contracts for June delivery gained Rs 829, or 1.99 percent, at Rs 42,412 per 10 gram in a business turnover of 9,077 lots.
The value of the April contract traded so far is Rs 5,963.25 crore and June contract saw the value of Rs 509.81 crore.
Similarly, Gold Mini contract for April jumped Rs 734, or 1.77 percent at Rs 42,137 in a business turnover of 10,006 lots.
Axis Securities advised its client to buy April Gold at Rs 42,100 level with stoploss at Rs 41,950 and a target of Rs 42,300.
MCX Gold has strong resistance at Rs 42,275-42,345 whereas support is at Rs 42,030-41,910, according to Motilal Oswal.
The brokerage firm said spot gold has intraday support at $1,602-1,595 whereas resistance is at $1,618-1,625.
At 12:34 pm (GMT), spot gold was up $11.75 at $1,596.49 an ounce in London trading.
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