Gold climbs to Rs 40,157 per 10 gram, up 0.47% for the week

January 24, 2020

Mumbai-India (Jan 24)  Gold prices gained Rs 134 to trade at Rs 40,157 per 10 gram in the Mumbai bullion market on January 24 due to rupee depreciation.

The yellow metal logged gain of Rs 188, or 0.47 percent, for the week.

The rate of 10 grams 22-carat gold in Mumbai was Rs 36,784 plus 3 percent GST, while 24-carat 10 gram was Rs 40,157 plus GST. The 18-carat gold quoted at Rs 30,118 plus GST in the retail market.

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Some ease off in the early morning session was seen after WHO did not declare China virus outbreak a global emergency.

Focus for today will be on the preliminary PMI numbers from major economies. Broader trend on Comex could be $1,540-1,570 and on domestic front prices could hover in the range of Rs 39,900- 40,400, added Damani.

Impact of the coronavirus outbreak in China is expected to affect the global economy and is helping the demand for safe-haven assets.

"Gold prices are likely to remain up in anticipation of a potential turmoil in China. The Chinese government put millions of people in three cities in lockdown as the death toll reached 25 and 830 people were infected," said Abhishek Bansal, Chairman and MD, Abans Group of Companies.

Bansal also said that weakness in the rupee against the dollar will continue to support gold prices in India.

The gold/silver ratio currently stands at 87.02 to 1, which means the amount of silver required to buy one ounce of gold.

Silver prices jumped Rs 325 to Rs 46,145 per kg from its closing on January 23.

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In the futures market, gold rate touched an intraday high of Rs 40,053 and an intraday low of Rs 39,970 on MCX. For the February series, the yellow metal touched a low of Rs 36,098 and a high of Rs 41,293.

Gold futures for delivery in February slipped Rs 230, or 0.57 percent on the MCX trading at Rs 40,053 per 10 gram in evening trade in a business turnover of 9,661 lots. Gold contracts for April delivery slide Rs 224, or 0.55 percent, at Rs 40,160 per 10 gram in a business turnover of 13,624 lots. The far month June contract was trading down by Rs 185, or 0.46 percent at Rs 40,225 per 10 gram with a business volume of 874 lots.

The value of the February contract traded so far is Rs 2,324.41 crore and April contract saw the value of Rs 453.74 crore.

Similarly, Gold Mini contract for February was down by Rs 223, or 0.55 percent at Rs 40,032 in a business turnover of 7,072 lots.

MCX Gold has support at Rs 39,900-39,680 whereas resistance is at Rs 40,320-40,450. Bias remains positive for the day, according to Motilal Oswal. The broking firm advised its clients to buy on dip targeting resistance at Rs 40,320-40,450 zone.

The brokerage firm said spot gold has key support at $1,535 whereas resistance is at $1,580.

At 12:23 pm (GMT), spot gold was down $4.18 at $1,558.84 an ounce in London trading.


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