NEW DELHI: Gold prices traded flat with negative bias on Monday as slightly weaker US Treasury yields countered an uptick in the dollar.
Gold futures on MCX eased by 0.07 per cent or Rs 32 to Rs 48,120 per 10 grams. Silver was unchanged, down 0.01 per cent or Rs 8 at Rs 62,303 per kg.
The lack of fresh triggers and the Christmas holiday mood has kept gold prices in a range. The global markets will return from holiday today.
Ravi Singh, Vice President & Head of Research, ShareIndia said that benchmark US Treasury yields edged down from their highest in more than a week touched in the previous session. “Weaker yields pushed gold prices higher and fear of Omicron is supporting the prices at lower levels. The factors prevailing in the market are favourable for gold,” he added.
Backed by strong inflows during weddings, festive seasons and fresh concern over Omicron has increased the volatility in gold prices. However, the dollar moves are keeping a check on gold prices to trade in a range-bound zone.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities said gold is stable as support from virus concerns, rising inflationary pressure and slowdown in China is countered by some recovery in US dollar index and stable equities.
In the spot market, the highest purity gold was sold at Rs 48,264 per 10 grams while silver was priced at Rs 61,883 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot price of gold has gained about 500 per 10 grams since December 10, whereas Silver has gained more than Rs 1,750 per kg.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,790 and resistance at$1,833 per ounce. MCX Gold February support lies at Rs 47,900 and resistance at Rs 48,400 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.1 per cent to $1,809.95 per ounce by 0323 GMT, staying mostly ahead of $1,800 since closing above that level for the first time in a month last week. US gold futures were little changed at $1,811.40.
Spot silver dropped 0.8 per cent to $22.76 an ounce, and platinum fell 0.9 per cent to $965.45. Palladium was up 0.6 per cent at $1,960.38 an ounce, after hitting its highest since November 23 at $1,962.50 earlier in the session.