In the Mumbai retail market, the price of gold fell by Rs 455 to Rs 47,351 per 10 grams. However, an increase in coronovirus cases, strong yields and expectations of the US Federal Reserve’s dovish stance confounded the downside.
India has continued to record the world’s highest daily COVID-19 infections, which has also forced the country to take drastic measures to prevent the spread of the same. These restrictions and an increase in cases can hamper physical demand.
In Mumbai, the rate of 10 grams 22 carat gold was Rs 43,374 and 3 percent GST, while 24 carat 10 grams was Rs 47,351 GST. In the retail market, 18 carat gold is more than Rs 35,513 and GST.
“The price of gold is facing resistance and shop closures and cases due to the epidemic are creating a negative sentiment. Only weddings are being purchased immediately. One of the most auspicious seasons of Akshaya Tritiya in mid-May is uncertainty and consumer demand will be affected.
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The US Commodity Futures Trading Commission said on Friday that speculators rose in COMEX gold on April 20 of the week.
The softening and increase in bond yields is outpacing the FOMC’s decision this week. The Fed expects to keep monetary policy unchanged broadly and may reiterate the need to keep interest rates low for long periods of time.
The US dollar flat against a basket of six rival currencies at 90.87.
Gold holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, were unchanged for the fourth day at 1,021 tonnes.
Spot gold fell $ 6.37 to $ 1,770.73 an ounce in London trading at 1227 GMT.
MCX Bulldesk dropped 129 points or 0.85 percent to close at 15,000 at 18:10. The index tracks real-time performance of MCX Gold and MCX Silver futures.
Prior to the policy meeting of the US Federal Reserve this week, the softening in gold prices helped. The Fed’s next meeting ends on April 28, and while no major policy changes are expected, investors are paying attention to liquidity measures and comments about inflation. US factory activity surged in early April, while retail sales reached a record in March and hired the boom, ”said Navneet Damani, vice-president, Motilal Oswal.
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The wide range on COMEX can be between $ 1,772- 1,797 and on the domestic front, prices can range from Rs 47, 350- 47,780.
“COMEX Gold Trades changed slightly to near $ 1780 / oz. The gold major is struggling to break the $ 1800 / oz level. The weak US dollar, rising virus cases and the lax monetary policy stance of major central banks are backed by some upbeat economic readings, general progress on vaccination and weak investor interest. Gold may stay ahead of the Fed’s decision; However, the general bias between continued weakness in the US dollar is still positive, ”said Ravindra Rao, CMT, EPAT, VP – Head Commodity Research at Kotak Securities.
Currently the gold / silver ratio is 69.20 to 1, meaning the number of ounces of silver required to purchase one ounce of gold.
Silver prices have risen by Rs 727 to Rs 68,425 per kg after it closed on April 23.
In the futures market, the gold rate was at a high of Rs 47,650 and an intra-day low of Rs 47,253 on the Multi Commodity Exchange (MCX). For the June series, the yellow metal touched a low of Rs 44,108 and a high of Rs 51,924.
Gold futures for June delivery fell by Rs 237, or 0.50 per cent, to trade at Rs 47,295 per 10 grams for 11,009 lots. It lost Rs 238, or 0.50 per cent, to close at Rs 47,595 in August, during a business of 2,956 lots.
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The June and August contracts are valued at Rs 1,789.71 crore and Rs 131.41 crore, respectively.
Similarly, the May gold mini contract slipped by Rs 189 to Rs 46,980 with a turnover of 13,466 lots, down 0.40 per cent.