Gold Prices Today: Yellow metal prices likely to be range-bound, to find support from rising Omicron cases

Gold was set for its worst performance in six years, though prices inched up in thin trade on December 31 in the international markets as US Treasury yields dipped, increasing the bullion's appeal by reducing its opportunity cost.

On the Multi-Commodity Exchange (MCX), gold contracts were up 0.08 percent, trading at Rs 47,924 for 10 grams at 9.44 am on December 31. Silver futures added 0.2 percent to Rs 62,282 a kilogram.

Gold and silver showed very high volatility on Thursday and recovered from their lows. Both the precious metals settled on a positive note in the international markets. Gold February futures contract settled at $1814.10 per troy ounce with a gain of 0.46% and silver March futures contract settled at $23.06 per troy ounce with a gain of 0.87%, said Manoj Kumar Jain, Prithvi Finmart Commodity Research.

We expect both the precious metals to remain volatile in today’s session and could hold their support levels. Any decline in the prices would be a buying opportunity for traders at lower levels. Gold has support at $1800-1788 per troy ounce and resistance at $1828-1840 per troy ounce while silver has support at $22.88-22.55 per troy ounce and resistance at $23.34-23.58 per troy ounce, he said.

At MCX, gold has support at Rs 47700-47550 and resistance at Rs 48050-48220. Silver has support at Rs 61700-61400 and resistance at Rs 62660-63100. We suggest buying gold on dips around Rs 47750 with a stop loss of Rs 47580 for target of Rs 48055, he added.

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Prices of precious metals are trading under pressure due to the strong dollar index. US bond yield rose marginally. Gold and silver prices are likely to remain range-bound due to holidays in most of the major economies. On MCX, gold has support at Rs 47,500 and resistance at Rs 48,000.

Rising inflation, growing Omicron concerns and stronger US dollar are driving the gold prices. The restrictions imposed by several countries to contain the Omicron during holidays is acting as a blow to gold sentiments. We expect gold to be bullish next week for the target of Rs 49,000.

Buy zone above Rs 48000 for target of Rs 48300

Sell zone below Rs 47700 for target of Rs 47400

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