Gold price in the international market beat a hasty retreat as investors latched on to seemingly hawkish remarks from the US Federal Reserve chair, erasing gains from more than a one percent rally fuelled by concerns over the Omicron coronavirus variant.
On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.09 percent to Rs 47,650 for 10 grams at 9.47 am on December 1. Silver futures were also up 0.13 percent to Rs 61,725 a kilogram.
"Gold and silver showed roller coaster moves on Tuesday. Both the precious metals settled on a weaker note in the international markets. We expect precious metal prices to remain volatile amid wild movements in the dollar index, fear of new virus variants and higher global inflation. Gold is expected to hold its important support of $1,752 per troy ounce and silver is also expected to hold $22.55 per troy ounce levels. Gold has support at $1,764-1,752 per troy ounce and resistance at $1788-1800 per troy ounce while silver has support at $22.55-22.20 per troy ounce and resistance at $23.10-23.45 per troy ounce, said Manoj Kumar Jain, Prithvi Finmart Commodity Research.
"At MCX, gold has support at Rs 47,660-47,480 and resistance at Rs 48,055-48,280 while silver has support at Rs 61,900-61,500 and resistance at Rs 62,700-63,300 levels. We suggest buying gold around Rs 47,700 with a stop loss at Rs 47,480 for target of Rs 48,150," he added.