Gold slips Rs 98 to Rs 40,014, silver down Rs 230 to Rs 46,410
New Delhi-India (Jan 21) Gold slipped by Rs 98 to Rs 40,014 per 10 gram in the Mumbai bullion market, tracking global cues.
Besides, the yellow metal came under pressure following Chinese gold association report which showed China gold demand dipped for the first time in three years.
The rate of 10 grams 22-carat gold in Mumbai was Rs 36,653 plus 3 percent GST, while 24-carat 10 gram was Rs 40,014 plus GST. The 18-carat gold quoted at Rs 30,011 plus GST in the retail market.
According to Navneet Damani, Vice President, Motilal Oswal, Gold hit the highest level in week following persistent tensions in the West Asia and impeachment proceedings against US President Donald Trump.
For 2020 and 2021, the IMF trimmed back its global growth forecasts, mostly due to a sharper-than-expected slowdown in India and other emerging markets.
For the day, broader trend on Comex could be $1,540-1,570 and on domestic front prices could hover in the range of Rs 39,820- 40,150, added Damani.
The gold/silver ratio currently stands at 86.21 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices fell Rs 230 to Rs 46,410 per kg from its closing on January 20.
In the futures market, gold rate touched an intraday high of Rs 40,176 and an intraday low of Rs 39,820 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 by Rs 17, or 0.04 percent on the MCX, trading at Rs 39,930 per 10 gram in the evening trade in a business turnover of 10,905 lots.
Gold contracts for April delivery fell by Rs 7, or 0.02 percent, to Rs 40,054 per 10 gram in a business turnover of 12,055 lots. The far month June contract was trading down by Rs 88, or 0.22 percent at Rs 40,138 per 10 gram with a business volume of 599 lots.
The value of the February contract traded so far is Rs 3,392.50 crore and April contract saw the value of Rs 423.67 crore.
Similarly, Gold Mini contract for February slide by Rs 37, or 0.09 percent at Rs 39,890 in a business turnover of 7,979 lots.
Gold price has given negative breakout from a rising trend line channel and price is expected to trade negative.
Sustaining below Rs 39,900, the next leg of correction would drag the price lower towards Rs 39,700-39,600 level in intraday trade, according to Axis Securities.
On the hourly chart, price is trading below 9 and 21 levels which is a bearish sign for price.
The brokerage firm advised its clients to sell February gold at Rs 39,900 with stoploss at Rs 40,000 and target of Rs 39,700.
MCX Gold has support at Rs 39,740-39,580 whereas resistance is at Rs 40,050-40,220. Bias remains positive for the day, according to Motilal Oswal. The broking firm advised its clients to buy on dip targeting resistance level of Rs 40,050-40,220.
The brokerage firm said spot gold has intraday support at $1,530 whereas resistance is at $1,590.
At 12:47 pm (GMT), spot gold was down by $4.77 at $1,556.51 an ounce in London trading.
MoneyControl
