Gold's dream run continues, hits fresh high of Rs 46,536; silver also gains

Gold prices extended gains for the seventh straight day on April 15 to hit a new high of Rs 46,536 per 10 gram in the Mumbai bullion market on rupee depreciation.

The precious metal had hit a seven-and-a-half-year high in the international market on April 14 on fear of recession but pared gains a day later on a stronger dollar.

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 46,536 plus 3 percent GST, while 24-carat 10 gram was Rs 42,627 plus GST. The 18-carat gold was quoting at Rs 34,902 plus GST in the retail market.

“Gold prices rose to their highest in more than seven years in the previous session as concerns over global economic growth and a wave of stimulus measures from central banks and governments lifted bullion's appeal," Navneet Damani, Vice President, Motilal Oswal, said.

The retreat from riskier assets followed the IMF prediction that the global economy may shrink by 3 percent in 2020 due to the virus outbreak, the worst downturn since the Great Depression of the 1930s.

SPDR holdings rose 0.8 percent to 1,017.59 tonnes. Apart from ETF flows, continuous gold buying by central banks is also lending support to the prices.

The broader trend on Comex could be $1,695-1,730 and on the domestic front, prices could hover in the Rs 45,800-46,500 range, Damani said.

The gold/silver ratio currently stands at 105.76 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices gained Rs 1,100 to Rs 44,000 per kg from its closing on April 13.

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

In the futures market, gold touched an intraday high of Rs 46,785 and an intraday low of Rs 46,060 on MCX. For the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 46,785.

Gold futures for delivery in June gained Rs 430, or 0.93 percent, on the MCX, closing at Rs 46,716 per 10 gram in a business turnover of 17,427 lots. Gold contracts for August delivery rose Rs 431, or 0.93 percent, at Rs 46,885 per 10 gram in a business turnover of 2,105 lots.

The value of the June contract traded for the day was Rs 3,246.90 crore and August saw the value of Rs 167.66 crore.

Similarly, Gold Mini contract for May jumped Rs 396, or 0.86 percent, to Rs 46,666 in a business turnover of 9,273 lots.

At 1201 pm GMT, spot gold was down by $3.19 at $1,723.28 an ounce in London trading.