Gold prices declined in the first trading day of 2022, while silver declined. Gold futures down 0.04% on MCX 48,082 per 10 grams while silver declined 0.3% 62,480 per kg. In global markets, gold declined as investors assessed potential risks from the Omicron COVID-19 version while awaiting key US jobs data due later in the week.
Location Sleep On Monday, it declined 0.3% to $1,823 an ounce. Spot silver was flat at $23.27 an ounce while platinum rose 1.76% to $979.
“Expect a breakout with a mild positive bias as long as gold holds above $1820. However, a straight downside below $1790 will weaken sentiment. For silver, below support for the short term outlook of $21.20 A breakout will turn bearish. Otherwise, choppy trading is on the cards,” Geojit Financial Services said in a note.
In 2021, gold in global markets fell 3.6% in its biggest annual fall since 2015 as central banks began dialing back pandemic-era stimulus to fight inflation.
Despite the rising number of coronavirus cases, the number of deaths and hospitalizations from the Omicron variant is comparatively low, with many governments easing the lockdown period.
Nish Bhatt, Founder and CEO, Millwood Cane International, said: “After two illustrious years of returns, gold prices underperformed most asset classes in CY21. Gold hits an all-time high in 2020 due to uncertainties created by COVID19. Prices moved higher as countries began to lock down and reopen for regular business activities. Investing in equities means a lot of funds are coming out of gold ETFs.”
“While gold attracts investment in a lower interest rate regime, the current rising interest rate scenario will continue to put pressure on the yellow metal. Interest rates, inflation, and the way countries regulate the new variant will push gold prices for good. Will direct for the part of 2022,” he said. (with agency input)
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