Products You May Like
NEW DELHI: Risk of another wave of Covid pandemic, thanks to a mutation detected in South Africa, increased the appeal of bullion counters on Friday as investors took a flight from risky assets.
Indian authorities alerted all states about the new variant and asked them to rigorously screen and test travellers coming from or transiting through three countries in which the variant had been confirmed — South Africa, Botswana, and Hong Kong.
Gold futures on MCX were up 0.44 per cent or Rs 209 at Rs 47,630 per 10 grams. Silver futures rose 0.12 per cent or Rs 76 to Rs 63,868 per kg.
“Supporting prices are the drop in US bond yields and pause in the US dollar index. Rise in Chinese gold imports also shows robust demand. However, weighing on price is lack of investor interest and increased expectations of Fed’s monetary tightening. Gold may trade higher as the market reacts to new virus related development, however, a sharp rise is unlikely with focus still on Fed,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, the highest purity gold was sold at Rs 47,687 while silver was priced at Rs 63,308 on Thursday, according to the Indian Bullion and Jewellers Association.
Trading strategy
“Gold in MCX has entered the consolidation zone and remains till the levels of Rs 47,700 or Rs 47,300 is broken. Buy zone is above Rs 47,700 for the target of Rs 48,000. Sell zone is below Rs 47,300 for the target of Rs 47,000,” said Ravi Singh, Vice President & Head of Research, ShareIndia.
Global markets
Spot gold rose 0.2 per cent to $1,792.62 per ounce by 0051 GMT. U.S. gold futures advanced 0.5 per cent to $1,793.90. Spot silver fell 0.1 per cent to $23.55 per ounce. Platinum dropped 0.6 per cent to $989.77, while palladium rose 0.4 per cent to $1,866.34.
China’s net gold imports via Hong Kong jumped to the highest since June 2018 in October, as buyers in the top consumer stocked up on the metal as a cushion against rising inflation. read more