Gold prices in India fell today, remaining in losses for the second day, though the fall was moderate amid firming global rates. Gold futures fall 0.04% on MCX 48575 per 10 grams while silver fell 0.45% 61,856 per kg. In global markets, gold edged higher to reclaim $1,800 an ounce level as concerns over the fast-spreading Omicron coronavirus variant boosted the metal’s safe-haven appeal.
Asian stock markets were lower today as new lockdowns to curb the rapid spread of Omicron in parts of Europe are also troubling investors.
“Gold is initially expected to be choppy with a slight positive bias, but a direct break above $1820 will move prices higher. An unexpected decline below $1765 is a sign of weakness,” a note by domestic brokerage Geojit said in.
A setback to President Joe Biden’s economic agenda also weighed on the risk sentiment. Traders were assessing the latest comments from US Senator Joe Manchin, who left Democrats with few options for reviving Biden’s agenda after rejecting a nearly $2 trillion tax-and-spend package.
The US dollar index rose higher in the past week to hover near a three-week high.
Among other precious metals, spot silver rose 0.1% to $22.37 an ounce, while platinum was down 0.2% to $928.23.
For silver, “If the key support at $21.20 remains uninterrupted, a recovery in the counter is expected. However, minor resistance is seen at $22.70,” Geojit said.
Despite Omicron’s concerns, Sleep is on track for the first annual loss in three years as central banks ease pandemic-era stimulus to fight inflation. gold had reached a record high 56,200 in August last year.
In India, demand for physical gold improved marginally last week as some buyers flocked to stores expecting a further hike in domestic prices, Reuters reported, citing jewelers.
Dealers were offering discounts of up to $2 an ounce over the official domestic prices. Gold rates include 10.75% import and 3% GST. (with agency input)
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