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Gold Prices Today: New virus strain may keep yellow metal volatile this week

Moneycontrol logo Moneycontrol 29-11-2021 Sandip Das
Gold Prices Today: New virus strain may keep yellow metal volatile this week © Shweta Mungre Gold Prices Today: New virus strain may keep yellow metal volatile this week

Chrysus, the Greek god of gold, beamed on Monday as the fifteenth letter of his alphabet joined the pandemic lexicon, stoking fears of a more potent omicron coronavirus variant and, driving in turn, the safe-haven appeal for the yellow metal.

Physical gold demand picked up in major Asian hubs last week, helped by a retreat in prices, with dealers in India preparing for a likely spurt in buying as the wedding season gathers pace.

On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.37 percent to Rs 47,760 for 10 grams at 9.33am on November 29. Silver futures jumped 1.04 percent to Rs 62,690 a kilogram.

Gold and silver prices settled on a mixed note in the international markets on November 26. Gold December futures contract settled at $1,791.40 per troy ounce, up 0.4 percent and silver December futures contract settled at $23.145 per troy ounce, down by 1.49 percent. We expect gold prices could show further strength amid concerns of the new virus and pressure in global equity markets, said Abhishek Chauhan, Head of Commodity and Currency, Swastika Investmart.

At MCX, gold has support at Rs 47,720-47,500 and resistance at Rs 48,280-48,600 and silver has support at Rs 62,500-61,900 and resistance at Rs 63,600-64,200. We suggest buying gold around Rs 47,800 with a stop loss at Rs 47,480 for a target of Rs 48,400.

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Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold traded modestly higher at $1795/oz after a 0.1 percent gain in the previous session. Gold is supported by safe haven buying as market players assess the virus situation and its possible impact on economic activity and monetary policy response. However, weighing on the price is recovery in bond yields and the US dollar index after brief losses late last week.

Gold, along with other commodities, may remain volatile as the virus related developments are assessed. However, increased risk aversion may keep the prices supported.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.‚Äč

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