Damani expects domestic prices to hover in the range of Rs 52,300 and Rs 53,000. "The broader trend on COMEX could be in the range of $1,930-1,965 per ounce."
Gold prices gained Rs 173 to Rs 52,874 per 10 gram in the Mumbai market on the back of a rupee depreciation. The yellow metal lost Rs 3,252, or 5.79 percent, during the week, tracking a selloff in the overseas market after hitting a high of Rs 56,126 on August 7.
The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 39,656, Rs 48,433 and Rs 52,874, respectively, plus 3 percent GST.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.1 percent to 1,252.09 tonne on August 13.
Market participants will focus on industrial production and retail sales number expected from the US.
US jobless claims dropped below one million last week for the first time since the start of the COVID-19 pandemic. US officials are trying their best to create optimism in the market and on the new coronavirus relief bill, which is still in the negotiation phase.
“Gold prices inched higher for third day in a row after some profit booking earlier this week, the metal is supported by a weaker dollar, falling yields and weak economic data. Even when China claims to be virus free, retail sales continue to witness a fall indicating how hard it is to boost growth on the demand side when the help is primarily on the supply side,” said Navneet Damani, Vice President, Motilal Oswal.
He expects domestic prices to hover in the range of Rs 52,300 and Rs 53,000. "The broader trend on COMEX could be in the range of $1,930-1,965 per ounce."
“We may see some consolidation above $1,900/oz before any next major move,” said Ravindra Rao, VP-Head Commodity Research at Kotak Securities.
The gold-to-silver ratio currently stands at 78.02 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices rose Rs 329 to Rs 67,768 per kg from its closing on August 13.
In the futures market, gold rate touched an intraday high of Rs 52,743 and a low of Rs 52,160 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 435, or 0.82 percent, at Rs 52,495 per 10 gram in evening trade on a business turnover of 15,685 lots. The same for December delivery declined Rs 455, or 0.86 percent, at Rs 52,670 on a business turnover of 2,124 lots.
The value of the October and December contracts traded so far is Rs 3,477.64 crore and Rs 250.46 crore, respectively.
Similarly, Gold Mini contract for September edged lowered Rs 421, or 0.79 percent at Rs 52,727 on a business turnover of 10,021 lots.
At 11:59 (GMT), spot gold was down $5.38 at $1,948.26 an ounce in London trading.
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