In the futures market, gold rate touched an intraday high of Rs 45,850 and an intraday low of Rs 45,590 on MCX. For the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 47,327.
Gold prices slipped Rs 507 to Rs 45,785 per 10 gram in the Mumbai bullion market on a stronger dollar. However, the precious metal was getting support on the downside from the reemergence of a new wave of coronavirus infection being reported in some countries.
The US dollar index, measured against a basket of six currencies gained 0.37 percent to 100.14.
After remaining closed to nearly two months, jewellers in part of the country opened their shops in the green and orange zones. Among the big brands Senco Gold & Diamonds, Kalyan Jewellers and Tanishq reopened some of their stores.
Suvankar Sen, Executive Director, Senco Gold and Diamonds said, “We have started operating at selected stores in 4 states -West Bengal, Odisha, Assam and Karnataka after getting approvals from concerned Government authorities. To ensure safe hygienic shopping experience for our customers and for the wellbeing our employees we will be following all suggested safety measures. We are ensuring contact-less shopping experience by using new age technology and emphasizing on digital payments.”
The rate of 10 gram 22-carat gold in Mumbai was Rs 41,939 plus 3 percent GST, while 24-carat 10 gram was Rs 45,785 plus GST. The 18-carat gold quoted at Rs 34,339 plus GST in the retail market.
COMEX Gold slipped below $1,700/oz as US Dollar index gained. The US dollar index trades higher above 100 amid safe haven buying, rise in bond yields and slightly better than expected non-farm payrolls data last week. But reports of a potential second wave of coronavirus in couple of countries might turn investors to gold as a safe haven, said Ravindra Rao, VP-Head Commodity Research at Kotak Securities.
According to Navneet Damani, Vice President, Motilal Oswal, Gold held above the key $1,700 level as a new wave of coronavirus infections in some countries kept the safe-haven metal underpinned, despite firmer equities and a stronger dollar.
Amidst continuous comments from both US-China regarding the trade war, IMF has signaled a possible downward revision of global economic forecasts, and warned the United States and China against rekindling a trade war that could weaken recovery from the pandemic.
The broader trend on COMEX could be in the range of $1690-1730 and on domestic front prices could hover in the range of Rs 45,450-46,180.
Gold prices traded positive on Monday as second wave of coronavirus infections in China, Japan and South Korea raised concerns over economic recovery. The rise in cases in China, Japan and South Korea have also alarmed the situation in nations where government has removed some lockdown restrictions, said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Patel further said that with recent rise in equity markets and stable situation in China has drawn some liquidation in gold long positions. The CFTC data showed that speculative long positions in gold have declined by 12251 in the previous week.
The gold/silver ratio currently stands at 105.98 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices rose Rs 600 to Rs 43,200 per kg from its closing on May 8.
In the futures market, gold rate touched an intraday high of Rs 45,850 and an intraday low of Rs 45,590 on MCX. For the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 47,327.
Gold futures for delivery in June was marginally higher by Rs 18, or 0.04 percent on the MCX trading at Rs 45,830 per 10 gram in evening trade in a business turnover of 13,329 lots. Gold contracts for August delivery lowered by Rs 32, or 0.07 percent, at Rs 46,025 per 10 gram in a business turnover of 7,481 lots.
The value of the June contract traded so far is Rs 2,387.09 crore and August contract saw the value of Rs 334.13 crore.
Similarly, Gold Mini contract for June eased Rs 22, or 0.05 percent at Rs 45,798 in a business turnover of 10,298 lots.
Patel expects prices to trade sideways for the day with MCX Gold June support at Rs 45,500 and resistance at Rs 46,000.
MCX Gold is expected to trade in a range bound market having support at Rs 45,400 level and resistance at Rs 45,800 level, according to Motilal Oswal.
The broking said spot gold to trade in a range of $1,675-1,710 range.
At 12:31 pm (GMT), spot gold was up by $2.68 at $1,706.12 an ounce in London trading.
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