Gold costs were steady at Rs 51,051 per 10 grams in the Mumbai market on strength in the US dollar and weak global cues. The yellow metal has been consolidating in a broad range with a negative bias in the last sessions. The rate of 10 grams 22 carat gold in Mumbai stood at Rs 46,751 + 3% GST, while 24-carat 10 grams was Rs 51,051 + GST.
MCX Comdex Bullion Index lost156.74 points which equals 0,97% at 15,936.64. The index indicates the real-time performance of MCX Silver and MCX Gold futures.
According to Tapan Patel, Senior Commodities Analyst at HDFC securities, the yellow metal prices traded under pressure on a stronger USD against leading currencies; however, a decline in Treasury yields kept downside limited in gold prices. The precious metal prices fluctuate in the narrow range of mixed global cues over US-China tensions and new BREXIT uncertainties.
COMEX gold traded 0.5% lower near $1935/oz after a 0.5% increase yesterday. The yellow metal dropped as low as $1911.7/oz in intraday trade yesterday but returned to end higher.
According to Ravindra Rao, VP – Head Commodity Research at Kotak Securities, Gold may remain choppy.
The amount of silver required to buy one ounce of gold
Today, the gold and silver ratio is 79.09 to 1, which means the amount of silver required to buy one yellow metal ounce.
From its closing on September 8, silver prices dropped Rs 278 and settled at Rs 64,547 per kg.
In the futures market, the yellow metal rate hit an intraday high of Rs 51,231 and an intraday low at Rs 50,872 on the MCX (Multi Commodity Exchange). For the October series, the yellow metal settled at a low of Rs 45,596 and a High of Rs 56,191.
The Yellow metal futures for October delivery lost 0.72% (Rs 396) t Rs 50,984 per 10 grams. The same for December fell 0.81%, which equals Rs 416 and settled at Rs 51,177.
The value of the October’s contracts traded at Rs 3,007.67 crore, while December’s contracts traded at Rs 284,18 crore.
Similarly, the Gold Mini contract for October dipped 0.70% or Rs 359 and reached Rs 51,074 on a business turn over of 16,808 lots.
According to Patel, the yellow metal prices will trade sideways down with support at $1,900 and resistance at $1,960. MCX Gold October has support at Rs 50,600, and resistance stands at Rs 51,400.
At 1200 (GMT), spot gold slipped $6.02 at $1,925.72 an ounce in London trading.