Gold prices edged lower to settle at Rs 49,209 per 10 gram on December 4 as participants trimmed their long position as seen by the open interest. The precious metal after hitting a low of Rs 47,792 on Monday ended the week with a gain of 2.66 percent for the week.
In the retail market, the bullion metal settled at Rs 49,316 per gram on Friday up nearly 1 percent for the week on hopes of additional US stimulus and weakness in the dollar.
The premium charged by a dealer over official domestic price fell to $3.5 per troy ounce this week from $5 last week on subdued demand.
The rate of 10 gram 22-carat gold in Mumbai was Rs 45,173 plus 3 percent GST, while 24-carat 10 gram was Rs 49,316 plus GST. The 18-carat gold quoted at Rs 36,987 plus GST in the retail market.
The US Labour Department reported that nonfarm payrolls jumped by 245,000 jobs in November after rising by 610,000 in October, the lowest in six months.
The US dollar settled modestly higher at 90.79 or up 0.09 percent yesterday against a basket of six currencies, but down 1.21 percent for the week.
Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund fell 7.11 tonnes to 1,182.70 tonnes.
MCX Bulldesk dropped 9 points, or 0.06 percent to settle at 15,204. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research Limited said, “Technically, LBMA Gold Spot is traded near 21-Daily Moving Average at $1846 levels below which could see some sideways momentum. MCX Gold February could see some hurdle near Rs 49,650-49,700 levels which is its 21-Daily Moving Average. However, above it could rally up to 50150-$50400 levels.”
The gold/silver ratio currently stands at 78.19 to 1, which means the amount of silver required to buy one ounce of gold.
The retail silver prices eased Rs 54 to Rs 63,064 per kg from its closing on December 3.
In the futures market, the gold rate touched an intraday high of Rs 49,473 and an intraday low of Rs 49,209 on the Multi-Commodity Exchange (MCX). For the February series, the yellow metal touched a low of Rs 41,560 and a high of Rs 57,100.
Gold futures for February delivery slipped Rs 93, or 0.19 percent, to settle at Rs 49,209 per 10 gram with a business turnover of 11,802 lots. The same for April slide Rs 27, or 0.05 percent, at Rs 49,225 on a business turnover of 614 lots.
The value of the February and April’s contracts traded on December 4 was Rs 5,340.83 crore and Rs 91.64 crore, respectively.
Similarly, Gold Mini contract for January declined Rs 107, or 0.22 percent to close at Rs 49,180 on a business turnover of 11,250 lots.
Spot gold settled with a marginal loss of $3.65 at $1,837.32 an ounce on Friday in London trading.
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