Gold prices gained on January 4 in the international markets amid curbs to contain the spread of Omicron coronavirus cases, while a rise in the US Treasury yields, supported by inflation fears kept the safe-haven bullion’s rise in check.
On the Multi-Commodity Exchange (MCX), gold contracts were up 0.16 percent, trading at Rs 47,793 for 10 grams at 9.25am on January 4. Silver futures slipped 0.14 percent to Rs 61,652 a kilogram.
The precious metals plunged again in the first trading session of 2022 amid strength in the dollar index and US bond yields. Both settled on a weaker note in the international markets. “We expect gold and silver to hold its support levels of $1,784 per troy ounce and $22 per troy ounce,” Jain said Manoj Kumar Jain, of Prithvi Finmart Commodity Research.
Gold has support at $1,784-1,772 per troy ounce and resistance at $1,818-1,832 per troy ounce while silver has support at $22.55-22.20 per troy ounce and resistance at $23.10-23.40 per troy ounce, according to.
At MCX, gold has support at Rs 47,550-47,400 and resistance at Rs 47,880-48,055, while silver has support at Rs 61,440-61,100 and resistance at Rs 62,000-62,500. We suggest buying gold around Rs 47,660 with a stop-loss of Rs 47,440 for target of Rs 48,000 and silver around Rs 61,500 with a stop-loss at Rs 60,900 for a target of Rs 62,500, Jain added.
Trading Strategy
Abhishek Chauhan, Head of Commodity & Currency, Swastika Investmart
Ahead of FOMC meeting minutes and crucial macros from the US front, gold prices gave up three days’ gain and fell 0.7 percent. The dollar index also soared 0.73 percent in the previous day, putting pressure on gold and silver prices. Strength in the dollar index may continue in today’s session which may further put selling pressure on gold and silver prices.
OPEC meeting may keep the crude oil prices volatile, which may support the dollar. On the MCX, gold has resistance at Rs 48,000. Any rise in prices towards resistance levels may witness selling pressure. It has support at Rs 47,500.
Ravindra Rao, CMT, EPAT, VP - Head Commodity Research, Kotak Securities
COMEX gold trades marginally higher near $1805/oz after a sharp 1.6 percent decline on Monday. Gold fell sharply after failing to sustain above $1830/oz level. Gold came under pressure as bond yields and US dollar index edged up as market players shifted focus to Fed’s monetary policy stance ahead of FOMC minutes and jobs report. Gold has come off the highs but is still near the key $1800/oz level and we may see volatility continuing reflecting larger market however rise in yields and US dollar may weigh on prices.
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