NEW DELHI: Gold prices traded higher on Tuesday amid curbs to contain the spread of Omicron coronavirus cases, while a rise in US yields supported by inflation fears kept bullion’s gains in check.
The Omicron variant of the coronavirus appears to be far more contagious than previous iterations, but data suggests it may be less virulent than Delta.
Gold futures on MCX gained 0.29 per cent or Rs 94 to Rs 47,810 per 10 grams. Silver was down 0.05 per cent or Rs 28 at Rs 61,713 per kg.
The 10 year US Treasury yields rose to six week high. Higher yields raise the opportunity cost of holding non-interest paying gold.
Ravi Singh, Vice President & Head of Research, ShareIndia said that gold prices are testing the support levels and the decline seems to be limited.
“The fall in gold prices is mainly after the US manufacturing activity shows the signs that labour and raw material supply constraints at factories are starting to ease. The correction is an opportunity for fresh entry in gold,” he added.
In the spot market, the highest purity gold was sold at Rs 48,333 per 10 grams while silver was priced at Rs 62,255 per kg on Monday, according to the Indian Bullion and Jewellers Association.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,790 and resistance at $1,820 per ounce. MCX Gold February support lies at Rs 47,500 and resistance at Rs 48,100 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.3 per cent to $1,806.20 per ounce by 0109 GMT, after slipping from a more than one-month high of $1,831.62 in the previous session. US gold futures were up 0.2 per cent to $1,804.50.
Spot silver rose 0.3 per cent to $22.92 an ounce, platinum was up 0.3 per cent to $957.49, and palladium gained 1 per cent to $1,843.18.