Gold prices dropped to Rs 52,001 per 10 gram on August 21 as participants increased their short positions as seen by the open interest. The precious metal oscillated over Rs 1,100 range during the day before ending the day with a loss of Rs 150 per 10 gram.
The bullion metal fell Rs 226, or 0.43 percent, for the week on the MCX.
The US dollar index, measured against a basket of six currencies rose 0.46 percent to 93.20.
The US announced that it has suspended its extradition treaty with Hong Kong and ended its reciprocal tax treatment on shipping with Hong Kong. Geopolitical tensions around US-China and Iran are keeping gold prices firm.
In the futures market, gold for October delivery touched an intraday high of Rs 52,409 and a low of Rs 51,239 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 45,596 and a high of Rs 56,191.
Gold delivery for October contract slipped Rs 150, or 0.29 percent, to settle at Rs 52,001 per kg with a business turnover of 15,327 lots. The same for the December contract edged lower by Rs 132, or 0.25 percent, to Rs 52,258 per kg with a turnover of 2,976 lots.
The value of October and December’s contracts traded during the day was Rs 8,409.30 crore and Rs 249.67 crore, respectively.
The spot gold/silver ratio currently stands at 72.46 to 1, which means the amount of silver required to buy one ounce of gold.
Similarly, Gold Mini contract for September eased by Rs 259, or 0.50 percent, to Rs 52,043 on a business turnover of 11,876 lots.
Gold prices may remain firm, and a key support level is seen around the 50-days EMA at $1,904 and the 100-days EMA at $1,824. Meanwhile, immediate resistance could be seen around $1,980-$2,037 levels, said Abhishek Bansal, founder chairman, Abans Group.