Gold Price Today: On MCX, the gold contracts were up 0.10 per cent to Rs 47,951 for 10 grams at 1125 hours on December 6
Gold price in India remained under Rs 48,000 on Monday. The yellow metal has become expensive after a new Covid-19 variant omicron had emerged across the globe.
On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.10 per cent to Rs 47,951 for 10 grams at 1125 hours on December 6. Silver price, on the other hand, rose sharply on Monday. The precious metal price jumped 0.17 per cent to Rs 61,618 for a kilogram on Monday.
In the international market, gold prices were flat on Monday, thanks to subdued US bond yields and the prospect of the Federal Reserve tightening policy at a faster pace. Spot gold slightly rose to $1,782.95 per ounce by 0419 GMT while US gold futures were flat at $1,783.60, according to Reuters.
Sentiment in wider financial markets remained weak as mixed US jobs data and fears around the omicron coronavirus variant supported bullion.
US employment growth slowed considerably in November, but the unemployment rate plunged to a 21-month low of 4.2 per cent, suggesting the labour market was tightening. The number of countries reporting omicron cases continued to rose as scientists still do not know whether it is more infectious than other variants and may likely take additional weeks to get these answers.
The International Monetary Fund warned Friday that it is likely to lower its global economic growth estimates due to the new variant and pushed investors to the safe haven appeal of bullion. Further lending support to gold, the US 10-year bond yield dropped below 1.4 per cent for the first time since September. However, further upside was capped as Fed officials struck a hawkish tone on stimulus tapering and interest rates.
“International spot gold prices have started flat to marginally higher this Monday morning in Asian trade lifted by omicron uncertainty. However, the prospect of a faster ending to pandemic-era asset purchases by the US Federal Reserve could cap gains. The main driver this week could be the US CPI data for the month of November due on Friday.
U.S. CPI accelerated 6.2 per cent in October and is forecast to rise 6.7 per cent in November. Technically, LBMA spot Gold have started above an important intraday resistance of $1782.00 level and a sustained trade above could push prices to the resistance zone at $1788.00-$1794.00 levels. Support zone is at $1770.00-$1760.00 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold prices could start flat to marginally higher this Monday morning, tracking a positive start in the overseas prices. Technically, MCX Gold February immediate hurdle is at 48125 level and a break above could push the prices to Rs 48,350 levels. Support zone is at Rs 47,800-47,600 levels and a break below both levels could pull the prices to Rs 47,350 levels,” he added.
“Gold prices were up from its low on Friday after employment data showed some tightening in job market and fears increasing for new virus, however gains were limited on upside as Fed officials maintained their hawkish tone. Technically gold has corrected from 9 period Moving average in last week while weekly close above $1768 is a light for bulls at the end of the tunnel.
Moving forward for this week $1789, $1798 & $1815 will continue to provide resistance on upside while $1767 & $1754 may provide some support. For the day move below $1777 may take it towards $1767,” said Vidit Garg, director, MyGoldKart.
Gold traders are closely watching any sign of mutations in Omicron variant as the data is not sufficient to understand the severity and impact of this new variant. Gold prices will remain in up trend this week and short covering may be seen at dips. However, the recent hawkish stance of Fed is holding back the breakout in Gold. Buy Zone Above – Rs 48,000 for the target of Rs 48,500
