Gold Price Today: Yellow metal prices to remain range-bound amid Omicron surge, strong yields

Gold inched higher on January 7 in the international markets hovering close to a two-week low it hit in the previous session, after the chief of the World Health Organisation (WHO) said the Omicron variant cannot be considered 'mild', while stronger yields capped bullion's gains.

On the Multi-Commodity Exchange (MCX), gold contracts were marginally up by 0.06 percent, trading at Rs 47,471 for 10 grams at 9.29 am. Silver futures added 0.02 percent to Rs 60,438 a kilogram.

Gold and silver crashed on Thursday after hawkish Fed statements and record gains in the US bond yields. Both the precious metals settled on a weaker note in the international markets. We expect both the precious metals to remain volatile in today’s session. Support is expected at lower levels once again. Gold is expected to hold $1770 per troy ounce and silver is expected to hold $21.84 per troy ounce levels on a closing basis. The yellow metal has support at $1778-1770 per troy ounce and resistance at $1800-1814 per troy ounce while silver has support at $22.00-21.84 per troy ounce and resistance at $22.50-22.70 per troy ounce, said Manoj Kumar Jain, of Prithvi Finmart Commodity Research.

At MCX, gold has support at Rs 47280-47100 and resistance at Rs 47660-47850 while silver has support at Rs 60000-59400 and resistance at Rs 60900-61300. We suggest buying gold around Rs 47300 with a stop loss of Rs 47080 for target of Rs 47700 and silver around Rs 60000 with a stop loss of Rs 59300 for target of Rs 61300, he added.

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Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades mixed near $1790/oz after a sharp 2% decline yesterday. Gold has stalled after the sharp sell-off triggered by FOMC minutes as market focus shifts to non-farm payrolls report. Support from virus concerns and geopolitical risks is countered by Fed’s aggressive monetary tightening stance and weaker investor interest. Gold has corrected sharply from recent highs but remains within the recent range of $1780-1830. The general bias remains weak unless we see a surprise number from US jobs report.

Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart

The dollar which moves opposite to gold prices gained marginally in the previous trading session. US unemployment and ISM service PMI data stood weak for gold and silver but bulls jittered over sooner and faster pace of rate hike which put pressure on precious metals. US 10-year bond yield rose to 1.73 percent after Fed released its minutes which indicates 70 percent chance of a rate hike in March 2022. Technically, gold has support at Rs 47400 and below this level more selling pressure is expected. Silver has support at Rs 60000 and below this level, it may test Rs 58000. It has resistance at Rs 61300.

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