NEW DELHI: Gold prices traded higher in the final session of 2021, but are set for the worst performance in the last six years.
Gold futures on MCX gained 0.11 per cent or Rs 55 at Rs 47,940 per 10 grams. Silver futures were up 0.15 per cent or Rs 96 at Rs 62,256 per kg.
The yellow metal got its mojo back on weak jobless claims data and mixed global cues. US Treasury yields dipped, increasing the bullion’s appeal by reducing its opportunity cost.
Ravi Singh, Vice President & Head of Research, ShareIndia said, “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.”
In the spot market, the highest purity gold was sold at Rs 47,798 per 10 grams while silver was priced at Rs 61,133 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
Gold was set for its biggest annual decline since 2015, having fallen 4 per cent so far this year, as economies recovered from the pandemic’s impact, reducing demand for the safe-haven metal.
Silver was on track for its worst year since 2014 with a drop of about 12 per cent. Platinum was down nearly 10 per cent while palladium was headed for its biggest yearly decline since 2015 with a 20 per cent slump.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,800 and resistance at $1,833 per ounce. MCX Gold February support lies at Rs 47,500 and resistance at Rs 48,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.2 per cent to $1,818.43 per ounce by 0119 GMT, hovering close to a one-month high hit on December 28. U.S. gold futures were up 0.2 per cent at $1,818.00.
Spot silver rose 0.3 per cent to $23.11 an ounce, platinum gained 0.3 per cent to $963.92, and palladium fell 0.5 per cent to $1,956.42.