Gold prices dipped by Rs 307 to Rs 47,276 per 10 gram in the Mumbai retail market on the company currency rupee and curbed global lines. The yellow metal traded in a thin lane range as the investors wait for the FOMC meeting minutes later today. The rate of 10 gram, 22-carat gold in Mumbai is worth Rs 43,305 plus 3 per cent GST, whereas the 24-carat 10 gram is rated at Rs 47,276 plus GST. The 18-carat gold is priced at Rs 35,457 plus GST in the retail market.
Minneapolis Fed President Kashkari averred that it could be “reasonable” to start reducing the Fed’s bond-buying program later this year, though it would depend on making further progress in the labour market. Investors will focus on the minutes from Fed’s July meeting for any guidance on taper plans.
Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell by 3.49 tonnes to 1,017.14 tonnes. The ETF has a market value of $58.50 billion. A gauge for US dollar, Dollar Index traded above 93 marks on safe-haven interest. Spot gold was marginally higher by $3.99 to $1,790.21 an ounce at 1235 GMT in London trading.
MCX Bulldesk rose by 16 points or 0.11 per cent, at 14,225 at 18:07. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
“Gold traded steady hovering over the one week high, as the precious metal was caught between mixed US economic data, a firmer dollar and safe-haven demand driven by the delta coronavirus variant fears. US retail sales dropped last month as a resurgence of the pandemic contributed to a pullback in spending. Sales were down 1.1% against the previous month. The decline was steeper than expected. Although, on other hand, US industrial production was reported better than expectations, up by around 0.7% from last month,” said Navneet Damani, VP – Commodities Research at Motilal Oswal Financial Services.
The broader range on COMEX could be between $1775- 1815 and on the domestic front, prices could hover in the range of Rs 47,000- 47,700. The gold/silver ratio stood at 74.63 to 1, which resulted in 74.63 ounces of silver that equals an amount to buy an ounce of gold. Silver prices dipped by Rs 595 to Rs 63,341 per kg compared to its closing price on August 17.
In the futures market, the gold-rated at an intraday peak of Rs 47,437 and an intraday dip of Rs 47,136 on the Multi-Commodity Exchange (MCX). For the October series, the yellow metal received a low of Rs 45,662 and a high of Rs 50,040.
Gold futures for October delivery was around Rs 20, or 0.04 per cent, to Rs 47,300 per 10 gram in evening trade on a business turnover of about 12,233 lots. The same for December lowered Rs 75, or 0.16 per cent, to Rs 47,509 on a business turnover of at least 1,788 lots.
The October and December’s contracts were valued at Rs 1,748.93 crore and Rs 36.09 crore, respectively. Additionally, the Gold Mini contract for September month shoots up by Rs 21, or 0.04 per cent at Rs 47,227 on a business turnover of around 13,429 lots.