The gold/silver ratio currently stands at 85.93 to 1, which means the amount of silver required to buy one ounce of gold.
Gold prices fell slightly by Rs 3 to Rs 39,757 per 10 grams in Mumbai's bullion market on rupee appreciation, and stronger equity markets ahead of US-China ‘phase one’ trade deal.
The rate of 10 grams, 22-carat gold in Mumbai was at Rs 36,417 plus 3 percent GST, while that of 10 grams, 24-carat gold was at Rs 39,757 plus GST. The 18-carat gold quoted at Rs 29,818 plus GST in the retail market.
According to Navneet Damani, Vice President, Motilal Oswal, gold prices continued to trade in a narrow range after a fall from its seven-year-highs, as President Trump dampened the escalating tensions between US-Iran with his speech. This week remains important with respect to the US-China trade deal as the signing ceremony of the “phase one” deal is going to be inked on January 15, hence putting some pressure on the precious metal pack.
Metal prices got some support after the disappointing non-farm payrolls data that was released last week. The broader trend on the Comex could be $1,545-1,575, and on the domestic front, prices could hover in the range of Rs 39,550- 40,050, said Damani.
The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 85.93 to 1.
Silver prices gained Rs 85 to 46,265 per kg from its closing on January 10.
In the futures market, gold rates touched an intraday high of Rs 39,801 and an intraday low of Rs 39,525 on the MCX. For the February series, the yellow metal touched a low of Rs 36,098, and a high of Rs 41,293.
Gold futures for delivery in February slipped Rs 206, or 0.52 percent on the MCX, trading at Rs 39,665 per 10 gram in evening trade in a business turnover of 12,002 lots. Gold contracts for April delivery eased Rs 219, or 0.55 percent, at Rs 39,835 per 10 gram in a business turnover of 10,483 lots.
The value of the February contracts that have been traded so far is Rs 3,042.27 crore, and that of April contracts saw the value of Rs 326.92 crore.
Similarly, Gold Mini contract for February was down by Rs 198, or 0.50 percent at Rs 39,651 in a business turnover of 8,536 lots.
Gold price is trading under a descending triangle pattern, and the price is expected to trade in the negative. Sustaining below Rs 39,700 may drag price lower towards Rs 39,500-39,400 levels, according to Axis Securities.
On the hourly chart, the price of gold is trading below 9, 21 and 60 EMA, which is a bearish sign. The Relative Strength Index at 44 which indicates low momentum in prices.
The brokerage firm advised its clients to sell February gold at Rs 39,700 with a stoploss at Rs 39,850 and a target of Rs 39,500.
MCX Gold has support at Rs 39,500-39,250, whereas resistance is at Rs 39,805-39,980. Sideways to negative movement is expected for the day, according to Motilal Oswal. The brokerage firm advised its clients to sell on rise targeting support level of Rs 39,500-39,250.
The brokerage firm said spot gold has an intraday support at $1,530 whereas resistance is at $1,565.At 12:01 pm (GMT), spot gold was down $9.04 at $1,552.97 an ounce in London trading.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.