In the Mumbai bullion market, the Gold prices rise by Rs 180 to mark a total of Rs 45,913 per 10 gram and the silver prices slipped down by Rs 900 to Rs 41,300 per kg, showing a lower value of rupee than the dollar and uncertainty in the stock market.
The rate of a 10 gram 18, 22, and 24-carat gold in Mumbai was Rs 34,435, Rs 42,056, and Rs 45,913 plus 3 percent GST, respectively.
The corona cases are spreading at a faster pace all across the world, creating uncertain market trends and the entire world is seeking safe assets. Thus, gold prices are increasing. Moreover, the US-China war is adding severity to the problem.
US President Trump hinted that raising tariffs on China is certainly an option as he thinks China is the cause of novel coronavirus outbreak and world widespread.
The broader trend on Comex could be $ 1,685-1,725/oz and on the domestic front, prices could hover in the range of Rs 45,270-46,000, Damani stated.
Rao said Comex Gold may face resistance near $ 1,725/oz if the bulls succeed in taking it above $ 1,725. “The upside might extend to $ 1,738/oz. On the flip side, if the bulls fail in taking it above $ 1,725/oz, then it can trade in the $ 1,725-1,710/oz range.”
However, the silver prices slipped down by Rs 900 to Rs 41,300 per kg.
Currently, the gold/silver ratio is 111.16 to 1, which means the amount of silver required to buy one ounce of gold.