MUMBAI: Gold prices were steady at Rs 51,238 per 10 gram in the Mumbai retail market on a weaker rupee and muted global cues. The precious metal had gained 0.62 percent last week in the domestic market.
The rate of 10 gram 22-carat gold in Mumbai was Rs 46,934 plus 3 percent GST, while 24-carat 10 gram was Rs 51,238 plus GST. The 18-carat gold quoted at Rs 38,429 plus GST in the retail market.
The US dollar trades with modest gains at 92.96 or up 0.22 percent against a basket of major currencies after a 1 percent decline last week.
The bullion metal traded in a tight range this month in tandem with the dollar as Republicans and Democrats wrangled over the stimulus package before November 3 presidential election. Gold is hovering around $1,900/oz awaiting a new trigger for a fresh rally.
Money managers raised their net long US gold futures and options positions by 15,488 contracts to 135,311 and US futures and options positions by 5,593 contracts to 40,065 in the week up to October 20, according to CFTC data.
Regardless of who ultimately wins this year’s presidential election, an increase in government financial deficits is certain. This condition alone, without the added benefit from either candidate’s policies, bodes well for Gold and Silver prices in nominal terms, said Motilal Oswal in its report titled “How precious is US elections?”
The brokerage firm said in the short term, Comex Gold could be forming a base around $1,880-1,840, while rallies are likely to be capped in the range of $1,940-1,975. Similarly on the domestic front dips towards Rs 49,500-48,500 is a good range to buy with short-term upsides being capped around Rs 52,200-54,000. On the longer-term prices front, both the presidents are likely to benefit yellow metal and the brockerge firm continues to maintain its target of $2,500 on the Comex and Rs 65,000-67,000 on the domestic front.

Press Trust of India