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Gold Prices Today: Stronger dollar, rising bond yields may weigh on yellow metal

Gold contracts are up 0.12 percent to Rs 47,960 for 10 grams on December 6. Silver futures add 0.3 percent to Rs 61,699 a kilogram

December 06, 2021 / 09:49 AM IST
Gold, yellow metal

Gold, yellow metal


Gold prices held steady on December 6 in the international markets as participants weighed the prospect of a faster ending to pandemic-era asset purchases by the US Federal Reserve after data suggested the labour market was tightening rapidly.


On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.12 percent to Rs 47,960 for 10 grams at 9.22am on December 6. Silver futures added 0.3 percent to Rs 61,699 a kilogram.


“We are seeing 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 chart. The current levels are the best prices 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,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodity.


February Gold closing price Rs 47,903, Support 1 - Rs 47,750, Support 2 - Rs 47,500, Resistance 1 - Rs 48,150, Resistance 2 - Rs 48,500.


March Silver closing price Rs 61,516, Support 1 - Rs 60,900, Support 2 - Rs 60,500, Resistance 1 - Rs 62,130, Resistance 2 - Rs 63,000.

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


COMEX gold trades marginally higher near $1787/oz after a 1.2 percent gain in the previous session. Gold has recovered from the one-month low as mixed US jobs report has given a new turn to the ongoing debate about Fed’s monetary tightening. Increasing virus concerns has also increased gold’s safe haven appeal. However, weighing on price is weaker investor interest and gains in the US dollar and recovery in bond yields. Gold has recovered from lows but may struggle to break past $1800/oz as Fed’s tightening expectations may continue to weigh.


Ravi Singh, Head of Research and Vice President, Share India


Gold traders are closely watching any sign of mutations in Omicron variant as the data is not sufficient to understand the severity and impact of this new variant. Gold prices will remain in the uptrend this week and short covering may be seen at dips. However, the recent hawkish stance of Fed is holding back the breakout in gold.


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


Manoj Kumar Jain, Prithvi Finmart Commodity Research


Gold and silver prices settled on a positive note in the international markets on December 3. Gold February futures contract settled at $1,784.15 per troy ounce, up by 1.22 percent and silver March futures contract were settled at $22.56 per troy ounce, up by 1.10 percent. Domestic markets also settled on a positive note. We expect both the precious metals to remain volatile this week and could test its resistance levels of $1,800 per troy ounce and $23.20 per troy ounce, respectively, once again.


Gold has support at $1,772-1,758, and resistance at $1,796-1,810 per troy ounce. Silver has support at $22.34-22.10, and resistance is at $22.80-23.00 per troy ounce.


At MCX, gold has support at Rs 47,700-47,480 and resistance at Rs 48,155-48,380, while silver has support at Rs 61,200-60,700 and resistance at Rs 62,100-62,700 levels. We suggest buying gold around Rs 47,700 with a stop loss of Rs 47,440 for a target of Rs 48,280 and silver around Rs 61,200 with a stop loss at Rs 60,600 for a target of Rs 62,400.

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.​

Sandip Das
first published: Dec 6, 2021 09:49 am

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