Gold prices falls for third straight day to 51,973/10 gm, down Rs 4,153 from record highPage Visited: 19
Gold prices slipped for the third successive day by Rs 346 to 51,973 per 10 gram in the Mumbai market on strength in the dollar and rally in equity markets. The yellow metal traded under pressure after sources said US-China may resume trade talks in the near term.
The yellow metal declined Rs 901, or 1.7 percent, this week in the domestic market and lost 7.4 percent, or Rs 4,153, from its record high touched on August 7.
Market participants will keep an eye on preliminary manufacturing and service PMI data expected from major economies, which, if reported weaker than expectations, could lend further support to bullion.
The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 39,239, Rs 47,607 and Rs 51,973, respectively, plus 3 percent GST.
“An unexpected rise in jobless claims last week, volatility in equities, increasing worry over rising COVID cases and other uncertainties are supportive of metal prices. A rebound in yields from the lows and rise Dollar Index limited gains for the same,” said Navneet Damani, Vice President, Motilal Oswal.
Echoing Damani’s views, Abhishek Bansal, Founder Chairman, Abans Group, said gold is seeing support from safe-haven demand due to the increase in coronavirus cases globally.
More than 22.56 million people are reported to have been infected by the COVID-19 globally, and 787,814 have died.
The gold-to-silver ratio currently stands at 78.30 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices jumped Rs 221 to Rs 66,374 per kg from its closing on August 20.
In the futures market, gold touched an intraday high of Rs 52,409 and a low of Rs 51,239 on the Multi-Commodity Exchange (MCX). For the October series, the yellow metal touched a low of Rs 45,596 and a high of Rs 56,191.
Gold futures for October delivery slipped Rs 909, or 1.74 percent, to Rs 51,242 per 10 gram in evening trade on a business turnover of 15,534 lots. The same for December delivery edged lower Rs 890, or 1.70 percent, to Rs 51,500 on a business turnover of 2,926 lots.
The value of the October and December’ contracts traded so far is Rs 4,161.48 crore and Rs 120.45 crore, respectively.
Similarly, Gold Mini contract for September eased Rs 842, or 1.61 percent, at Rs 51,460 on a business turnover of 13,682 lots.
“The broader trend on the COMEX could be $1,900-1,960 per troy ounce. On the domestic front, prices could hover in the range of Rs 51,000-52,500,” Damani stated.
Bansal expects gold prices to trade firm around its key support level of $1,904 (50-days EMA) and $1,824 (100-day EMA). He sees immediate resistance around $1,980-2,037 levels.
At 1207 (GMT), spot gold was down $33.80 at $1,913.30 an ounce in London trade.
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