Gold prices were little changed in the international market on January 6 as a surge in US Treasury yields following hawkish meeting minutes released by the Federal Reserve offset the precious metal's safe-haven demand amid rising cases of the Omicron coronavirus variant.
On the Multi-Commodity Exchange (MCX), gold contracts were down 0.54 percent, trading at Rs 47,763 for 10 grams at 9.32 am on. Silver futures fell 1.39 percent to Rs 61,372 a kilogram.
Gold and silver prices showed high volatility on Wednesday and gained in the international market, but both the precious metals settled on a positive note. Gold February futures contracts settled at $1,825.10 per troy ounce with a gain of 0.58% while silver March futures contract settled at $23.17 per troy ounce with a gain of 0.48%. We expect gold and silver to witness profit booking again at higher levels in today’s session, said Manoj Kumar Jain, of Prithvi Finmart Commodity Research.
Gold has support at $1,810-1,800 per troy ounce and resistance at $1834-1845 per troy ounce while silver has support at $22.88-22.55 per troy ounce and resistance at $23.40-23.70 per troy ounce. At MCX, gold has support at Rs 47,800-47,550 and resistance at Rs 48180-48400 while silver has support at Rs 61800-61220 and resistance at Rs 62700-63100. We suggest selling gold below Rs 48000 with a stop loss of Rs 48220 for target of Rs 47660 and in silver below Rs 62200 with a stop loss of Rs 62700 for target of Rs 61300, he added.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold has slipped over 0.9% to trade near $1810/oz as FOMC minutes showed that Fed officials are considering faster rate hikes and also reducing the balance sheet. The losses are however limited by increasing virus concerns. Gold has once again corrected after failing to sustain above $1830/oz but has so far managed to hold above $1800/oz level. With mixed factors in place, price may remain in a broad range however general bias may be on the downside as Fed’s stance may keep US dollar supported.
Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart
Gold gained as the dollar index fell for second consecutive day. Crude oil prices soared putting pressure on the dollar index and supporting the precious metals. However, US ADP non-farm employment change data stood strong which capped the gain of gold and silver. US bond yield also retreated 1 percent in the previous session. Gold prices may remain supportive today and any correction could be a good buying opportunity in it. It has support at Rs 47800 and resistance at Rs 48250. Silver has support at Rs 61100 and resistance at Rs 63300.
Ravi Singh, Vice President & Head of Research at ShareIndia
Gold prices are trading in a tight range after the release of the December Federal Reserve meeting minutes signaled a possibility of earlier and faster rate hikes due to increasing inflation. The Omicron concern is also rising day by day, making economic recovery vulnerable.Buy zone above Rs 48200 for target of Rs 48500
Sell zone below Rs 47800 for target of Rs 47600
Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited
As per daily technical chart, gold and silver are showing weakness. Momentum indicator RSI is also indicating the same on the hourly as well as daily chart. So traders are advised to create fresh sell positions near given resistance levels. Traders should focus important technical levels.
February Gold closing price Rs 48021, Support 1 - Rs 47800, Support 2 - Rs 47600, Resistance 1 - Rs 48100, Resistance 2 - Rs 48300.
March Silver closing price Rs 62238, Support 1 - Rs 61800, Support 2 - Rs 61000, Resistance 1 - Rs 62400, Resistance 2 - Rs 62800.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.