Gold gains for fourth straight week, silver falls to Rs 62,545 per kg

Gold prices fell Rs 127 to Rs 51,223 per 10 gram in the Mumbai retail market despite weakness in the dollar. The precious metal gained Rs 318, or 0.62 percent this week, rising four straight weeks on the trot.

The dollar traded lower at 92.77 against a basket of major currencies. The precious metal's negative correlation with the greenback has strengthened in the past month as investors track Washington’s wrangling over coronavirus stimulus.

The focus will be on the US manufacturing and services PMI data, expected later in the day, that could add volatility to the precious metal.

The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 38,417, Rs 46,920, and Rs 51,223, respectively, plus 3 percent GST.

In international trade, spot gold was trading up $7.01 at $1,911.11 an ounce at 12:08 GMT in London trading.

Gold holdings in SPDR ETF dropped 3.5 tonne to 1265.55 tonne. 

MCX iCOMDEX Bullion Index inched higher by 61.91 points, or 0.40 percent, to 15,666.76 at 17:39 hours. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

The gold-to-silver ratio currently stands at 81.89 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices declined Rs 234 to Rs 62,545 per kg from its closing on October 22.

In the futures market, gold touched an intraday high of Rs 51,030 and a low of Rs 50,684 on the Multi-Commodity Exchange (MCX). For the December series, the yellow metal touched a low of Rs 48,384 and a high of Rs 56,379.

Gold futures for December delivery rose Rs 213, or 0.42 percent, to Rs 50,979 per 10 gram in evening trade on a business turnover of 13,709 lots. The same for February gained Rs 181, or 0.36 percent, to Rs 51,077 on a business turnover of 1,721 lots.

The value of the December and February’s contracts traded so far is Rs 2,654.13 crore and Rs 18.34 crore, respectively.

Similarly, Gold Mini contract for November edged higher Rs 220, or 0.43 percent, at Rs 50,961 on a business turnover of 8,355 lots.

Navneet Damani, Vice President, Motilal Oswal, sees domestic prices hovering in the range of Rs 50,650-51,150 per 10 gram.

Ravindra Rao, VP-Head Commodity Research at Kotak Securities, expects gold to trade sideways until there is more clarity on US stimulus.

Sriram Iyer, Senior Research Analyst at Reliance Securities, too sees the yellow metal trading sideways in a $1,888-1,922 range or with a marginal bullish momentum. He sees strong support near Rs 50,700 levels, with the upside capped at Rs 51,180 levels.

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