Gold price in India gained on Tuesday after a steep drop in the previous session. On the Multi-Commodity Exchange (MCX), the gold contracts rose 0.25 per cent to Rs 47,574 for 10 grams at 1150 hours on January 11. Silver also recovered on Monday. The precious metal future climbed 0.40 per cent to Rs 60,909 for a kilogram on January 11.
In the international market, gold price jumped on the back of weaker US dollar and treasury yields. Spot gold futures were up 0.3 per cent to $1,805.98 per ounce by 0535 GMT. US gold futures gained 0.4 per cent to $1,805.40. The 10-year treasury yield dropped from two-year high of 1.808 per cent to 1.778 per cent. The dollar eased on Tuesday. Traders awaited December inflation to get a clue on the timing and pace of US Federal Reserve policy normalisation.
India splurged a record $55.7 billion on gold imports in 2021, buying more than double the previous year’s tonnage. The 2021 gold import bill easily doubled the $22 billion spent in 2020, and surpassed the previous high, set in 2011, of $53.9 billion, according to the official, Reuters reported.
Gold Price Outlook
“International gold prices have started flat to marginally higher this early Tuesday morning in Asian trade, but markets are anticipating quicker rate hikes based on key December US inflation data due later this week and will keep upside capped. Investors also await Fed Chair Jerome Powell testimony tonight along with a speech from ECB’s chief Christine Lagarde. Technically, if COMEX February trades below $1796.70 levels, it could continue its bearish momentum up to $1791.40-$1784.00 levels. Resistance zone is at $1804.10-$1809.40 levels. Domestic gold prices could flat to marginally higher this early Tuesday morning tracking overseas prices. Technically, if MCX Gold February trades below Rs 47,420 level it could continue its bearish momentum up to Rs 47,340-47,220 levels. Resistance zone is at Rs 47,535-47615 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“On strong US dollar and treasury yeilds, gold prices are trading under pressure. Fed’s December meeting minutes has pushed ji gold to lower levels. However, traders are cautious and closely watching the development of Omicron for further position building in gold. Buy Zone Above – Rs 47,450 for the target of Rs 47,800. Sell Zone Below – Rs 47,200 for the target of Rs 47,000,” said Dr Ravi Singh, vice president and head of research,” ShareIndia.
“As per daily technical chart gold and silver both are now trading at demand zone. We can see a short covering rally in bullion’s any time. Momentum indicator RSI also indicating the same in hourly as well as daily chart. So traders are advised to create fresh buy positions near given support levels, traders should focus important technical levels given below for the day: February Gold closing price Rs 47,455, Support 1 – Rs 47,300, Support 2 – Rs 47,150, Resistance 1 – Rs 47,510, Resistance 2 – Rs 47,630. March Silver closing price Rs 60,667, Support 1 – Rs 60,300, Support 2 – Rs 59,800, Resistance 1 – Rs 61,000, Resistance 2 – Rs 61,500,” said Amit Khare, AVP – research commodities, Ganganagar Commodities Limited.
Silver Price Outlook
On silver price, Iyer said, “International silver prices have started flat to higher this early Tuesday morning in Asian trade as traders looked to Fed Chair Jerome Powell’s nomination hearing later in the day for new clues on the timing and pace of policy normalisation. However, upside could be capped as markets are anticipating quicker rate hikes based on key December US inflation data due later this week. Technically, if COMEX March trades below $22.400 levels, it could continue its bearish momentum up to $22.265-$22.070 levels. Resistance zone is at $22.600-22.740 levels. Domestic silver prices could start flat to marginally higher this early Tuesday morning tracking overseas prices. Technically, if MCX Silver March trades below 60860 levels, it could continue its bearish momentum up to Rs 60,365-60,060. Resistance zone is at Rs 60,860-61,050.”
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