Gold inched higher on December 13 in the international markets as elevated US consumer prices lifted its appeal as an inflation hedge, while investors awaited a flurry of central bank meetings this week, including by the US Federal Reserve, for further direction.
On the Multi-Commodity Exchange (MCX), the gold contracts were flat trading at Rs 48,164 for 10 grams at 9.28 am on December 13. Silver futures added 0.26 percent to Rs 61,307 a kilogram.
Gold and silver prices settled on a positive note last Friday in the international markets. Gold February futures contract settled at $1,783.20 per troy ounce, up by 0.37% and silver March futures contract settled at $22.21 per troy ounce, up by 0.89%. We expect gold and silver prices to remain volatile this week ahead of the US Federal Reserve policy meeting which will give further directions to the bullion market, said Manoj Kumar Jain, Prithvi Finmart Commodity Research.
Gold is expected to hold $1850 per troy ounce and silver could hold $21.84 per troy ounce levels. Gold has support at $1768-1754, with resistance at $1800-1812 per troy ounce. Silver has support at $22.00-21.84 and resistance is at $22.55-22.80 per troy ounce, he said.
At MCX, gold has support at Rs 48000-47850 and resistance at Rs 48280-48500 while silver has support at Rs 60800-60300 and resistance at Rs 61660-62100. We suggest buying gold around Rs 48000 with a stop loss of Rs 47780 for target of Rs 48400, he added. Track Live Gold prices here
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Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart
The mortality rate of this new virus is not yet known, although its spread rate is enough to cause fear, which can support precious metals. Omicron's rise in new cases seems to be limiting the rise in crude oil. But recent news showed that Omicron is 4.2 times more likely to spread than the Delta version, leading to a spike in hospitalizations and deaths around the world.
Gold may remain range-bound to get further clues from the FOMC meeting scheduled on Wednesday. Gold has resistance at Rs 48300-48500 and support at Rs 47700-47500. Silver has resistance at Rs 62000 and support at Rs 60000.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher near $1787/oz after a 0.5% gain in the previous session. Gold has inched up as US inflation data has increased gold’s appeal as an inflation hedge. Also supporting price are geopolitical tensions and persisting virus concerns. However, upside remains limited by expectations that Fed may fasten the pace of bond tapering at its upcoming meeting. Firmness in equities has also kept a check on gold price. Gold may remain range-bound ahead of central bank meetings however prospect of monetary tightening may keep pressure on prices.
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