Gold prices continued an upward march on rupee weakness, positive global cues and improving demand ahead of the festive season as prices surged by Rs 590 to Rs 47,583 per 10 gram in the Mumbai retail market. The yellow metal was supported by a geopolitical crisis in Afghanistan, increasing Delta variant of coronavirus cases globally boosted safe-haven status.
The price of 10 gram, 22-carat gold in Mumbai was Rs 43,586 plus 3 percent GST, while 24-carat 10 gram stood at Rs 47,583 plus GST. The 18-carat gold is quoted at Rs 35,687 plus GST in the retail market.
“There is a pent up demand for gold coins owing to the unlocking of markets across the country, resulting in positive consumer sentiment driving spending and loosening purse strings for investments in Gold”, said MMTC-PAMP Spokesperson.
“We recorded 7x growth in Q1 FY22 against the previous year in sales of 24k, 999.9 purity Gold coins. With the onset of the festive season, we expect the sales to go up further”, he added.
The firm is India’s only precious metal refinery, accredited by the London Bullion Market Association for Gold and Silver offers multiple alternatives for investing in gold to benefit from the current gold prices. Customers can choose from traditional units like gold coins, and bars, or opt for dynamic products like Digital Gold, through it partners & distributors.
The gold/silver ratio currently stands at 74.42 to 1, which means 74.42 ounces of silver is required to buy an ounce of gold.
Silver prices rose by Rs 1,049 to Rs 63,936 per kg against its closing price on August 16.
Gold prices extended weekly gains witnessing recovery from day’s low in wake of disappointing economic data and worries over fast-spreading Delta variant cases. The fall in US bond yields supported the bullion rally which fell to 1.23% for the day.
We expect gold prices to trade sideways to up with COMEX spot gold resistance at $1,810 and support at $1,770 per ounce. MCX Gold October support lies at Rs 47,200 and resistance at Rs 47,700 per 10 gram.