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NEW DELHI: Gold prices traded flat with a negative bias on Wednesday as a boost from weaker US Treasury yields countered the impact from a slight improvement in risk sentiment.
Analysts said that gold trading is likely to remain thin and range-bound this week, whereas rising cases of Omicron variant may add to bullion’s appeal.
Gold futures on MCX eased marginally 0.09 per cent or Rs 43 at Rs 47,999 per 10 grams. Silver was flat, edged lower 0.08 per cent or Rs 50 at Rs 62,464 per kg.
Ravi Singh, Vice President & Head of Research, ShareIndia said gold prices are trading in a tight range amid low volumes due to the global year-end. It may remain in consolidation mode this week.
“However, the new year celebrations are fuelling the possibility of Omicron widespread that’s why a majority of countries have already imposed the restriction on the celebration in order to curb the possible spread.”
In the spot market, the highest purity gold was sold at Rs 48,318 per 10 grams while silver was priced at Rs 62,225 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot price of gold has gained over 500 per 10 grams since December 10, whereas Silver has gained more than Rs 2,070 per kg.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $,1790 and resistance at $1,820 per ounce. MCX Gold February support lies at Rs 47,800 and resistance at Rs 48,400 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was little changed at $1,804.78 per ounce by 0123 GMT. US gold futures dropped 0.3 per cent to $1,805.20.
Spot silver was down 0.1 per cent at $22.96 an ounce, platinum was 0.7 per cent lower at $968.69, and palladium dropped 1.5 per cent to $1,959.21.