Gold/Silver Ratio : Gold prices slipped Rs 276 to Rs 47,047 per 10 gram in the Mumbai bullion market on weak global cues. Gold prices declined from the recent highs as investors locked in the short term profits near the resistance levels at $1745.
Gold prices traded lower on Monday after Beijing reported a rise in virus cases which may limit the retail demand from one of the world’s top gold consumers.
The rate of 10 gram 22-carat gold in Mumbai was Rs 43,095 plus 3 percent GST, while 24-carat 10 gram was Rs 47,047 plus GST. The 18-carat gold quoted at Rs 35,285 plus GST in the retail market.
Navneet Damani, Vice President, Motilal Oswal said after weeks with almost no new coronavirus infections, Beijing has recorded dozens of new cases in recent days, all linked to a major wholesale food market, raising concerns about a resurgence of the disease. Hedge funds and money managers cut their bullish positions in COMEX gold and silver contracts in the week to June 9, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.1 percent to 1,136.22 tonnes on Friday. The broader trend on COMEX could be in the range of $1700-1740 and on domestic front prices could hover in the range of Rs 46,700-47,300.
Ravindra Rao, VP- Head Commodity Research, Kotak Securities said a stable US dollar and weaker consumer demand has again limited the upside in the metal. Precious. However gold buying might re-emerge at lower levels as it is still supported by safe-haven buying amid bleak global growth outlook and increasing concerns about the second wave of infections.
The gold/silver ratio currently stands at 100.28 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices declined Rs 840 to Rs 46,915 per kg from its closing on June 12.
In the futures market, gold rate touched an intraday high of Rs 47,246 and an intraday low of Rs 46,672 on the Multi-Commodity Exchange (MCX). For the August series, the yellow metal touched a low of Rs 39,200 and a high of Rs 48,190.
Gold futures for August delivery slipped Rs 569, or 1.20 percent, at Rs 46,765 per 10 gram in evening trade on a business turnover of 13,964 lots. The same for October delivery eased Rs 575, or 1.21 percent, at Rs 46,928 on a business turnover of 5,554 lots.
The value of the August and October contracts traded so far is Rs 3,009.25 crore and Rs 44.32 crore, respectively.
Similarly, Gold Mini contract for July was down Rs 526, or 1.11 percent at Rs 46,799 on a business turnover of 10,349 lots.
MCX Gold price has given a negative breakout from the rising trend line channel, price is expected to trade negatively.
Sustaining below Rs 46,900 next leg of correction would push price lower towards Rs 46,600-46,500 level intraday, according to Axis Securities.
