The precious metal came in further pressure after US President Donald Trump’s comment that trade deal with China is very close lifted investor appetite for riskier assets.
The price of gold slipped Rs 103 to Rs 37,827 per 10 grams in Mumbai bullion market on the back of a global stock market rally after Boris Johnson’s Conservative Party won a historic election in the UK that allows him to finalise a Brexit deal.
The precious metal came under further pressure after US President Donald Trump’s said that a trade deal with China is very close, a comment that lifted investors' appetite for riskier assets.
The rate of 10 grams 22-carat gold in Mumbai was Rs 34,649 plus 3 percent GST, while that of 10 grams 24-carat gold was Rs 37,827 plus GST. The price of 10 grams, 18-carat gold was at Rs 28,370 plus GST in the retail market.
Silver prices gained Rs 150 to 43,880 per kg from its closing on December 12.
After gaining 19.29 percent in 2019, the precious metal was down Rs 348 for the week. While silver prices eased Rs 235 to Rs 43,880 per kilogram in the second week of December.
The gold/silver ratio, which is the amount of silver required to buy one ounce of gold, currently stands at 86.20 to 1.
In the futures market, the gold rate touched an intraday high of Rs 37,748, and an intraday low of Rs 37,466 on the 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 rose Rs 101, or 0.27 percent on the MCX, trading at Rs 37,645 per 10 gram during the evening's trade in a business turnover of 16,091 lots. Gold contracts for delivery om April gained Rs 95, or 0.25 percent, at Rs 37,709 per 10 gram in a business turnover of 2,718 lots.
The value of the February contracts traded so far is Rs 3,101.19 crore and that of the April contracts saw a value of Rs 96 crore.
Similarly, Gold Mini contracts for January was up Rs 62, or 0.17 percent at Rs 37,623 in a business turnover of 8,153 lots.
Gold prices edged higher in today’s session after it was able to hold the strong support zone of Rs 37,500 level and rallied higher up till the Rs 37,650 level. On hourly chart, RSI is below 60 levels, indicating low momentum in prices, according to Axis Securities.
Strong resistance can be seen near the Rs 37,700 level. If prices fail to sustain above the mentioned levels then we can expect some profit booking in gold down till Rs 37,600 levels.
The broking firm advised its clients to sell February gold at Rs 37,690 per 10 gram with a stoploss at Rs 37,800 and target of of Rs 37,500.
MCX Gold has support at Rs 37,600-37,520, whereas resistance is at Rs 37,750-37,900. Sideways to positive movement is expected for the day. Price sustainability above the immediate resistance at Rs 37,750 will give further momentum toward the next resistance level at Rs 37,900, according to Motilal Oswal.
The brokerage firm said spot gold has key support at $1,450, whereas resistance remains at $1,490.At 13:32 pm (GMT) spot gold was trading up $3.05 at $1,475.25 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.