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Gold Prices Today: Bullion finds a backer in Omicron scare; investors can buy on dips

On the MCX, the gold contracts were down 0.13 percent to Rs 47,850 for 10 grams at 9.31am on December 7. Silver futures shed 0.11 percent to Rs 61,200 a kilogram

December 07, 2021 / 09:59 AM IST
Gold Prices

Gold Prices


Gold prices stayed flat on December 7 in the international markets as a the dollar gathered strength and the US Treasury yields revived, restricting the metal’s appeal to a $4 range.


The dollar index steadied, hanging on to an overnight jump made with the US yields as investors hoped that the early signs of the Omicron variant being a mild threat would prove correct.


On the Multi-Commodity Exchange (MCX), the gold contracts were down 0.13 percent to Rs 47,850 for 10 grams at 9.31am on December 7. Silver futures shed 0.11 percent to Rs 61,200 a kilogram.


The US bond yields gained 3 percent in the last session on the expectation of a hike in interest rates sooner than forecast. However, uncertainty over the Omicron variant reduced the losses for precious metals, said Abhishek Chauhan, Head of Commodity and Currency at Swastika Investmart.


“On the MCX, gold may test Rs 48,200, while silver prices are likely to move towards Rs 62,000. The upside looks limited,” he added.

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Trading Strategy


Manoj Kumar Jain, Prithvi Finmart Commodity Research


Gold and silver plunged amid strength in the dollar index and rebound in the US bond yields. Both the precious metals settled on a weaker note in the international markets. We expect both the metals to remain volatile in today’s session and could hold key support levels of $1,750 per troy ounce and $22 per troy ounce. Gold has support at $1,762-1,750 per troy ounce and resistance at $1,794-1,810 per troy ounce, while silver has support at $22.00-21.84 per troy ounce and resistance at $22.55-22.80 per troy ounce.


At MCX, gold has support at Rs 47,770-47,580 and resistance at Rs 48,155-48,330, while silver has support at Rs 60,800-60,500 and resistance at Rs 61,700-62,100. We suggest buying gold on dips around Rs 47,700 with a stop loss of Rs 47,550 for a target of Rs 48,150.


Ravi Singh, Vice President & Head of Research, ShareIndia


Gold prices on the MCX is trading on cues from international rates. The new variant Omicron has put a brake on the domestic wedding demand till further clarity on the severity of the variant and its outbreak. Traders are weighing more on the early tapering by Fed after data suggested the labour market was rapidly tightening, pushing gold to choppy zone.


Buy zone above - Rs 48,000 for target of Rs 48,500
Sell zone below - Rs 47,700 for target of Rs 47,400


Amit Khare, AVP- Research Commodities, Ganganagar Commodity


We see huge volatility in bullions and this may continue for the month of December. As per technical chart, gold and silver are trading at oversold zone, momentum indicator RSI also indicates the same on the hourly as well as daily charts. The current level is the best price for short-term investors. So, short-term investors are advised to create fresh longs on small dips near given support levels, traders should focus important technical levels.


February gold closing price Rs 47,914, Support 1 - Rs 47,750, Support 2 - Rs 47,500, Resistance 1 - Rs 48,055, Resistance 2 - Rs 48,200.

March silver closing price Rs 61,270, Support 1 - Rs 60,600, Support 2 - Rs 60,000, Resistance 1 - Rs 62,000, Resistance 2 - Rs 63,000.

Sandip Das
first published: Dec 7, 2021 09:59 am

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