Gold and silver were trading flat in the Indian market on December 22 after opening a positive start on the back of upbeat market sentiment.
On the Multi-Commodity Exchange (MCX), gold opened up 0.1 percent at Rs 48,115 per 10 gram, while silver was up 0.2 percent at Rs 61,941 a kilogram.
At 9.40 am, gold was trading at Rs 48,037, down 0.06 percent, while silver was flat at Rs 61,810, marginally up 0.01 percent.
“Precious metals remained range-bound to the downside in the previous trading session. However, gold prices are trading at support levels amid increasing omicron cases across the world,” said Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart.
Gold was stuck in a range but silver did well with support of base metals on December 21. Both precious metals settled on a mixed note in the international as well as domestic markets.
Strength in equity markets resulted in profit-booking in gold in the later half of December 21.
On December 21, February gold futures contract on MCX settled at Rs 48,067, losing 0.36 percent after opening at Rs 48,151. March silver futures opened at Rs 61,288 and closed at Rs 61,805, gaining 0.63 percent.
“Gold prices were moderately lower in midday US trading on Tuesday on a continued corrective pullback from last week's good gains. Rising US treasury yields and better risk appetite in the marketplace seen on Tuesday are daily negatives for the safe-haven metal”, said Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited.
Gold and silver prices may break the range with US consumer confidence data scheduled later in the day, Chauhan said.
Trading strategy
Manoj Kumar Jain, Prithvi Finmart Commodity Research
February gold futures contract settled at $1,788.70 a troy ounce, down 0.33 percent, while March silver contract settled at $22.53, gaining 1.07 percent.
In the domestic markets, the February gold contract settled at Rs 48,067, down 0.36 percent. March silver settled at Rs 61,805, gaining 0.63 percent.
In the previous session, gold prices rallied in the early trade and crossed $1,800 but a rebound in the US benchmark bond yields, steady dollar and strength in the global equity markets triggered profit-taking once again.
Gold couldn’t hold above $1,800 and slipped again. The Federal Reserve governor’s hawkish comments on monetary policy and easing liquidity are also pressuring gold. However silver tested its resistance level of $22.55 once again.
We expect gold and silver to remain volatile and trade in a tight range ahead of the Christmas and New Year holidays.
Precious metals will find supports due to spreading omicron variant but a strong dollar will continue to restrict gains.
Gold has support at $1,780-1,768 and resistance at $1,800-1,812. For silver, support is at $22.30-22.10 and resistance at $22.74-23.
On MCX, gold has support at Rs 47,920-47,770 and resistance at Rs 48,240-48,400. Silver has support at Rs 61,300-60,900 and resistance at Rs 62,200-62,660.
We suggest buying silver on dips around Rs 61,300 with a stop loss of Rs 60,900 on a daily closing basis for the target of Rs 62,200.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Comex gold was trading mixed near $1,790 after declining 0.3 percent the previous day. Gold has come off highs as risk sentiment has stabilised somewhat, while US bond yields have edged up. However, supporting price are persisting virus concerns amid increasing spread of the omicron and restrictions imposed to limit its spread.
ETF investors have also moved to the sidelines, indicating a lack of direction. Gold may remain range bound, however, the Fed’s tightening outlook may support the dollar which will weigh on prices.
Ravi Singh, Vice President & Head of Research, ShareIndia
Gold traded in a tight range as global shares rose, with European and US stocks rebounding on renewed risk appetite, despite the surging number of omicron cases around the world. Gold prices may remain between Rs 47,800 and 48,300 this week.
Buy Zone above-Rs 48,300 for the target of Rs 48,600 Sell Zone below–Rs 47,800 for the target of Rs 47,500
Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited
Technically, gold and silver look attractive on the daily chart. Momentum indicator RSI also indicates the same in hourly as well as the daily chart.
Short-term investors are advised to create fresh longs for in small dips near the given support levels. Traders should focus on these technical levels for the day:
February gold closing price—Rs 48,067; support 1–Rs 47,880; support 2–Rs 47,700; resistance 1–Rs 48,250 and resistance 2–Rs 48,500.
March silver closing price: Rs 61,805; support 1–Rs 61,200; support 2–Rs 60,500; resistance 1–Rs 62,450 and resistance 2–Rs 63,000.
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