Gold prices steady at Rs 51,051/10 gm, silver down Rs 278 per kg

Gold prices were steady at Rs 51,051 per 10 gram in the Mumbai market on strength in US dollar and weak global cues. The yellow metal has been consolidating in a broad range with a negative bias in the last couple of sessions.

The rate of 10 gram 22-carat gold in Mumbai was Rs 46,762 plus 3 percent GST, while 24-carat 10 gram was Rs 51,051 plus GST. The 18-carat gold quoted at Rs 38,288 plus GST in the retail market.

Precious metals are expected to remain volatile ahead of the ECB policy statement tomorrow. The US Federal Reserve is also expected to keep a dovish stance when it releases its policy statement next weekend.

MCX iCOMDEX Bullion Index dropped 156.74 points, or 0.97 percent, at 15,936.64 at 17:23. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Tapan Patel- Senior Analyst (Commodities), HDFC Securities said, Gold prices traded under pressure on a stronger dollar against major currencies however slump in Treasury yields kept downside limited in gold prices. Gold prices are fluctuating in the narrow range on mixed global cues over US-China tensions and new BREXIT uncertainties.

“COMEX gold trades 0.5% lower near $1935/oz after a 0.5 percent gain yesterday. Gold fell as low as $1911.7/oz in intraday trade yesterday but bounced back to end higher. Mixed factors have led to directionless trade in gold and this may continue in the near term. Gold may remain choppy but buying might re-emerge at lower levels amid increasing global uncertainty and also as Fed’s dovish stance may limit upside in US dollar”, said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

The gold/silver ratio currently stands at 79.09 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices fell Rs 278 to Rs 64,547 per kg from its closing on September 8.

In the futures market, gold rate touched an intraday high of Rs 51,231 and an intraday low of Rs 50,872 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 369, or 0.72 percent, at Rs 50,984 per 10 gram in evening trade on a business turnover of 12,529 lots. The same for December dropped Rs 416, or 0.81 percent, at Rs 51,177 on a business turnover of 5,975 lots.

The value of the October and December’ contracts traded so far is Rs 3,007.67 crore and Rs 284.18 crore, respectively.

Similarly, Gold Mini contract for October edged lower Rs 359, or 0.70 percent at Rs 51,074 on a business turnover of 16,808 lots.

Patel expects gold prices to trade sideways to down with support at $1,900 and resistance at $1,960. MCX Gold October has support at Rs 50,600, resistance lies at Rs 51,400.