Gold steady at Rs 45,793 per 10 gram, silver up marginally

Gold prices rose by Rs 80 to Rs 45,793 per 10 gram in the Mumbai bullion market on April 20 on a depreciating rupee.

Major gold-trading centres have remained shut in the country due to the lockdown announced to prevent the spread of coronavirus.

The rate of 10 gram 22-carat gold in Mumbai was Rs 41,946 plus 3 percent GST, while 24-carat 10 gram was Rs 45,793 plus GST. The 18-carat gold quoted at Rs 34,345 plus GST in the retail market.

According to Navneet Damani, Vice President, Motilal Oswal, gold fell to the lowest level in a week as dollar firmed up and as investors remained optimistic after President Donald Trump’s new guidelines to re-open the US economy and encouraging early data on a potential COVID-19 treatment drove market participants towards riskier assets.

The economic calendar is muted for the day though central banks’ actions and updates on the COVID-19 will continue to give direction to metal prices.

On the domestic front, the RBI introduced sovereign gold bonds wherein the investors will get an interest rate of 2.5 percent per annum. Bonds will be issued in six tranches for the next six months.

The broader trend on Comex could be $1,650-1,705 and on the domestic front, prices can hover in the Rs 45,000- 45,900 range.

Also read: Should you invest in the fresh tranche of sovereign gold bonds?

The gold/silver ratio currently stands at 108.30 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices gained Rs 10 to Rs 42,280 per kg from its closing on April 17.

In the futures market, gold rate touched an intraday high of Rs 45,795 and an intraday low of Rs 45,310 on MCX.

For the June series, the metal touched a low of Rs 36,572 and a high of Rs 47,327.

Gold futures for delivery in June slipped Rs 74, or 0.16 percent, on the MCX, closing at Rs 45,661 per 10 gram in a business turnover of 16,407 lots.

Contracts for August delivery eased Rs 52, or 0.11 percent, at Rs 45,862 per 10 gram in a business turnover of 2,614 lots.

The value of the June contract traded for the day was Rs 3,031.81 crore and August saw the value of Rs 277.08 crore.

Also read: Gold prices likely to touch Rs 50,000-55,000 by end of 2020

Similarly, Gold Mini contract for May declined Rs 137, or 0.30 percent, at Rs 45,718 in a business turnover of 10,731 lots.

At 1202 pm GMT, spot gold was up by $3.49 at $1,687.27 an ounce in London trading.