Gold Futures Trades Higher On Positive Global Cues, Silver In Green
Gold Price in India: Gold futures traded higher on Tuesday, December 28, as the yellow metal trends in global markets. On the Multi Commodity Exchange (MCX), gold futures, due for delivery on February 4, were trading higher by Rs 101 or 0.21 per cent at Rs 48,167 as against Rs 48,066 in the previous trade. Silver for delivery on March 4 was up 0.32 per cent at Rs 62,503, from Rs 62,301 earlier.
#Sleep And #Silver Initial #rates for 28/12/2021#ibjapic.twitter.com/iJWNjXVrQE
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According to Mumbai-based industry body India Bullion and Jewelers Association (IBJA), domestic spot gold on Tuesday opened at Rs 48,255 per 10 grams and silver at Rs 62,105 per kg.
Gold in International Markets:
Gold prices slipped from a one-week high in thin trade on Tuesday, as Omicron easing concerns over the coronavirus pandemic and strong US retail sales data fueled risk appetite.
The US dollar, also seen as a safe haven, near the low end of its recent trading range versus a basket of peers, maintains the appeal of greenback-priced gold to holders of non-US currencies, and limits damage.
The two-year Treasury yield, which is very sensitive to interest rate expectations, climbed to its highest in nearly 22 months in Tokyo, adding to the opportunity cost of holding bullion that pays no interest.
“Gold edged higher despite dollar gains as market participants assessed the impact of the Omicron variant on the economy. Navneet Damani, VP, Commodity Research, Motilal Oswal Financial Services, said, “Asian stock markets were generally weaker with US crude due to uncertainty on investor sentiment due to uncertainty over the economic impact of the Omicron variant.”
On Monday, spot gold was down 0.1 per cent at $1,809.68 an ounce, after hitting its highest level since December 17. US gold futures ended 0.1 per cent higher at $1,810.90.
“COMEX gold is trading in a narrow range near $ 1810 an ounce after yesterday’s fall of 0.2 percent. Gold continued to trade in the range of $1800 an ounce, reflecting stability in the US dollar and bond yields amid lack of fresh triggers. Support from virus concerns, the Chinese economic slowdown and rising inflationary pressures is countered by strength in equities and weak investor interest.
Ravindra Rao, CMT, EPAT, Ravindra Rao, VP- Head Commodity Research, Kotak Securities said, “Gold may remain range bound as it looks to end a weak year on a weak note, however any depreciation in the US dollar Profit may make it vulnerable to improvement.”
Amit Khare, AVP – Research Commodities, Ganganagar Commodity Limited:
“Yesterday in February gold made a high of 48248, then a low of 48050, and silver made a low of 61702 and then a high of 62646. Movement in the US market may be very slow due to the end of the year and the New Year holiday.
Therefore short term investors are advised to create new longs in small dips near the given support level, traders should focus on the following important technical levels for the day:
February Gold closing price 48066, Support 1 – 47900, Support 2 – 47800, Resistance 1 – 48200, Resistance 2 – 48400.